Apartment Investment Located in Booming Tech Hub

The 350-unit luxury apartment community was recently acquired by Castle Lanterra Properties.

AUSTIN, TX—Austin is now the 11th largest city in the country with a population of 1 million within city limits and 2 million in the metropolitan area. Within a half-mile of the property, substantial new office development is underway, including 650,000 square feet of space being delivered in 2016. As a means to shelter these workers, new multifamily is springing up and changing hands as developers and investors jockey for position amid the recent growth spurt. One such apartment community is Villas Tech Ridge , a 350-unit luxury apartment community, recently acquired by Castle Lanterra Properties . Elie Rieder , founder and CEO of the New York-based firm of Castle Lanterra Properties, tells GlobeSt.com: “Austin has a diverse economy with 2.7% unemployment rate, with a tech climate that has companies relocating from Silicon Valley. We are drawn to properties that are near jobs and to date, we’ve acquired well-located 2000-vintage properties that require minimal upgrades.” Villas Tech Ridge, located just off Interstate 35, offers a mix of one-, two- and three-bedroom units. Built in 2008, it was developed as part of the Austin Energy Green Builder Program , an environmentally driven program that requires special consideration for energy-saving opportunities. “This is one of the few properties that is designed for a wide range of residents, from individuals to growing families; it is the only community in the immediate area offering three bedroom floorplans. This is a very special asset–class A in every sense,” said Rieder. “Our due diligence found the property to be impeccably maintained by the previous ownership. Our strategy going forward includes modest capital improvements, including light renovations to the apartments as they turn over and upgrades to the property’s impressive list of amenities.” Units include open floor plans with 9-foot or vaulted ceilings and high-end finishes, including granite countertops, mahogany cabinets and ceramic tile. The property features a pool with a large cabana, complemented by a clubhouse, fitness center and pet park. The location enjoys high visibility, nearby retail, easy access to highways and transportation, and is situated within the highly-regarded Pflugerville School District. The latest acquisition marks Castle Lanterra’s increasing presence in Texas’ capital city. In 2015, the firm entered this growing market with the purchase of Stonegate , a 452-unit apartment community situated near downtown Austin. Castle Lanterra’s managing director Austin Alexander has subsequently relocated to Austin to oversee the firm’s operations in this market and also identify new investment opportunities in the southern region. “This is a tremendous asset in a well-diversified growth market,” said Alexander. “The technology sector is booming and this property is located in the epicenter of that dynamic growth. Demand is strong for class-A multifamily product in this market, with all of the in-migration that Austin has been enjoying for the past several years. Based on our market research, there are only two new multifamily projects in this submarket, totaling 611 units, expected to be delivered through 2017.  We expect to see constraints on supply and increased demand for multifamily housing as thousands of new residents continue to move into this neighborhood over the next several years.”