Parker Heights & Flats53-Unit Community in the East Riverside Area of Austin, TX
East Riverside Submarket
Located just minutes from the Austin Central Business District, Oracle’s new campus, and the Austin Bergstrom Internation Airport.
Average rent’s at takeover were approximately 25% below nearby renovated product of a similar vintage.
economies of scale
We also own Hidden Gardens, a nearby property. By utilizing one manager for both communities, we’re able to reduce our operating expenses and increase resident satisfaction by having qualified, full-time property management staff.
Parker Heights is well positioned to benefit from the close proximity to major tech employers, including Oracle, Amazon, Google, Indeed, and Facebook.
1300 Parker Ln.
This 53-unit property was built in 1968, and features a very sought after unit mix comprised of 23 studios, 20 one-bedrooms, and 10 two-story, two-bedroom town homes.
- Occupancy at takeover 94.6% 94.6%
- Value-Add Rent Growth 25% 25%
- Average Annual Sub Market Rent Growth 4.53% 4.53%
- Average Sub Market Occupancy 95% 95%
Austin is one of the key places we want to be because we think that’s where our people want to be. We want to develop the kinds of facilities where you feel good about coming to work every day.
Parker Heights and Flats was originally brought to us as a pre-market deal from a broker connection in Austin. Instantly, we new it was a property worth pursuing, due largely in-part to it’s outstanding location in one of Austin’s hottest sub markets. The average rents at the time of take-over were drastically below that of nearby renovated product, and our tenant base was largely young professionals.
Since our purchase in late 2019, we’ve completed many capital expenditure projects, including the exterior renovations at Parker Flats, which houses the 23 studios. Our plan is to complete the exterior renovations and re-brand the building.
We expect to exit this project in 5-years, with an equity multiple greater than 2.0x and an average annual return of 17%.