‘90s Vintage Apartments Bring Out the Buyers
What does multifamily have in common with N’Sync and Destiny’s Child? The ‘90s were good to both. ARA principal Pat Jones tells us there were not many properties built in the ‘90s in Austin because of the soft economy, so now any time a '90s vintage property comes to market it's popular. (Alas, the Spice Girls didn’t fare as well. Except for Posh, who married Beckham.) Pat repped Northland Investment Corp in its sale of the 606-unit Northland at Stonehollow in Austin to an affiliate of Heitman.
The opportunity to acquire a '90s vintage property with original interiors in a great location (this is near the Domain and The Arboretum), drove alot of investor interest, Pat tells us. Bidders included institutions, private owner/operators, and private wealthy investors. The value-add opportunity bucket of capital is currently the largest pool of dollars pursuing Central Texas acquisitions, he says. Despite new construction supply concerns, Austin's apartment fundamentals remain strong, Pat says, with average occupancy of 95% and year-over-year rent growth of 7%. Unfortunately for the Spice Girls, there’s no year-over-year interest in their music any more.