Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Parkwood Terrace, a 144-unit, value-add asset in Round Rock, Texas.
“This asset’s immediate submarket has the second highest occupancy in the entire MSA, supporting a strong organic rent growth in addition to upgrade premiums,” said Jordan Featherston, IPA first vice president investments. “Parkwood Terrace benefits from its low density (18.3 units per acre) as well as recent capital enhancements implemented by previous ownership, which include full exterior improvements and clubhouse renovations.” Featherston and IPA’s Kent Myers and Will Balthrope represented the seller, Langdon Street Capital, and procured the buyer, The Medve Group.
“Parkwood Terrace has experienced consistently strong rent growth over the past 12 months, just over 20 percent, with occupancy remaining at high levels,” added Myers. “Residents are within close proximity to many of the entertainment and employment drivers in the area and are just a short commute to Downtown Austin.”
Round Rock, Texas, which is just north of Austin, continues to grow rapidly with new developments in the area such as the Apple’s $1 billion campus expansion, The District development, Indigo Ridge, and Kalahari Resort and Convention Center. This asset has strong neighboring demographics which include a five-mile radius population of just over 189,000, with an average household income of $120,000.
Langdon Street Capital added, “”We purchased this property during a very difficult period of Covid, but we were happy to be able to work through the issues and provide a much higher quality of life for the residents. Consequently, this asset has far exceeded expectations on every return metric for our partners and we are eager to implement the same business plan on the next property.”
“IPA in Texas provides investors with a large inventory of high-quality multifamily investment opportunities in every market, offering local market research and sales expertise in Dallas-Fort Worth, Houston, Austin and San Antonio,” said Balthrope.
