We knew the Austin multifamily market was hot, but if you want to buy an apartment complex, you better be ready to make a deal. (Monty Hall would be proud.) KW Commercial’s Jim Young tells us he and colleague Nick Nelson closed those three deals in 30 days and have another project under contract.
KW Commercial’s Jim Young (here with 9-month-old Morgan and 3-year-old Catie, he's in the center) says the properties were in escrow for about three to four months prior to closing, but if you know land deals, 120 days from contract to close is still pretty darn quick. The deals include Trails at Walnut Creek Apartments, 2440 Wickersham (the seller was repped by Chris Gamel), and 2714 E Cesar Chavez. The duo has another 100-unit complex under contract for an international client, which should close in the next 45 days. Next up: putting offers on several other apartment complexes in San Antonio and Round Rock in the next 10 days. Fun fact about the deal: Jim was taking his CCIM test when the deal closed. He passed, he tells us. Nick must have mentored him as he'll be the Central Texas CCIM chapter prez next year.
Jim tells us the back story to the sale of Trails at Walnut Creek Apartments was a little unorthodox. Nick and Jim repped the buyer and approached the owner, who was not looking to sell. The aggressive pricing and the rising rents near the Domain Shopping Center really attracted the buyer to the deal. (Plus, when you have the opportunity to buy a gazebo you're not gonna pass it up.) Bonus: about a week before closing the deal, the owner learned that Kerbey Lane is building a new restaurant right around the corner. Who wants to join us for a Hipster Burger and sweet potato fries? We promise, no hipsters were injured in the making of this burger.
Jim says he and Nick (pictured) are getting calls every week from buyers in New York City to LA, along with international investors all looking to the Austin market for deals. And, the flow of transactions is increasing in speed and volume, Jim says. The continued stability of job growth in Austin, combined with its low cost of living (compared to the rest of the country), creates a gravitational pull to this area that's magnified by the friendly business environment and mild weather. After going to college at West Point in New York, Jim doesn’t miss being frozen and looking at gray skies for months at a time.
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