HFF Sells 324-Unit Class A M-F Development in Austin
- Aug 29, 2012
By Keith Loria, Contributing Editor
HFF closed the sale of Deerfield Apartments, a 324-unit, Class A multi-housing development in Austin’s southwest submarket, on behalf of Nevins Adams Lewbel Schell.
“From an overall standpoint, it’s a real nice asset down on the southwest market place that has great access to the Mopac Expressway,” Sean Sorrell, HFF’s senior managing director, told Commercial Property Executive. “I think one of the biggest differences is the city of Austin is getting ready to expand (the toll lane) all the way to the property, which will only enhance its access to the rest of the southwest.”
Located at 8700 Brodie Lane, Deerfield Apartments was purchased by Austin-based entrepreneurial real estate investment firm Falcon Southwest for an undisclosed amount.
The 11-year-old property consists of one-, two- and three-bedroom units, averaging 945 square feet. Falcon Southwest plans to implement moderate upgrades to common areas and unit interiors during its hold period.
“The new buyers are going to be refurbishing and adding to the common area amenities and a pool area, adding some cabanas and an outdoor kitchen,” Sorrell said. “There will probably be some upgrades to the kitchen area as well.”
Falcon Southwest’s investment strategy emphasizes adjusted returns through value-added acquisition and repositioning opportunities, and Deerfield Apartments should do well in this area.
“It’s a Class A property, but what we’re seeing in the market place now is that several groups have gone in and are adding to the ground floor and adding fir wood flooring to all the living areas, which helps in upkeep and looks more modern,” Sorrell said. “That’s a trend I am seeing and I think they plan on doing that to this property as well.”
The property is close to Mopac and Highway 71, and approximately 10 miles southwest of downtown Austin, which Sorrell said is an ideal place to be for those who want to take advantage of the city’s shops, restaurants and employment opportunities.
Nevins Adams Lewbel Schell owns and operates multi-family communities totaling more than 14,000 units, and has a long relationship with HFF. In fact, Sorrell represented the company in the original purchase of this property.
Deerfield Apartments was 97 percent leased at the time of sale.