Block Funds Acquires 396-Unit Luxury M-F Project in Texas
- Jan 30, 2013
Block Funds, a Kansas City, Mo.- based commercial real estate fund sponsor, has acquired The Settlement, a 396-unit luxury apartment home community located in Kyle, Texas, which is just south of Austin.
The Block Multifamily Group, a division of Block Real Estates Services, will serve as the management company for The Settlement.
“We acquired Block Multifamily Group last year with the intention of adding multi-family to our investment offerings. We have always been in the office and industrial markets and that purchase was to give us expertise to do this type of transaction,” Aaron Mesmer, Block Funds’ investment sales & acquisitions, told Commercial Property Executive. “This is our first apartment purchase, although we manage others. It fit in well with our overall investment philosophy of providing good risk, preserving capital and good cash flows for our investors.”
Located at 210 S. Amberwood, the multi-family development is a Class-A property that was built in January 2012.
The lease-up for The Settlement was completed in less than 10 months, whereas similar properties have taken as long as 16 to 22 months. The aggressive lease-up reveals the demand in the marketplace for a quality multi-family complex that caters to young professionals.
“There are a number of things we liked about this property. It was new construction, we liked the location and see Austin as a growing market with a high degree of job growth, and the quality is very high,” Mesmer added. “It also has a large amenity package, which we think is what today’s tenants want.”
Unit amenities include vaulted nine-foot ceilings, island kitchens, large walk-in closets, modern black track lighting, maple shaker cabinets, beveled mirrors with chair rail in dining rooms, individual water heaters and energy efficient 13 seer rated heating and air conditioning.
The community features an oversized resort swimming pool with cascading fountains, a fitness center, and clubhouse with fireplace, executive business center and professional on-site management. Breezeway storage units and detached garages are also available.
Block Funds’ investment strategy focuses on properties which have an investment size of $5 million to $60 million, have a minimal size of 60,000 square feet, are located in suburban or fill in and are either Class A or Class B properties.
“Our goal for 2013 is to acquire anther 1,000 units but that’s going to be on an opportunistic basis,” Mesmer concluded. “We’ll be lookinh in our main markets and striking when something presents itself.”
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