AUSTIN, TX. – August 26, 2015 – (RealEstateRama) — Passco Companies, LLC has acquired Lone Oak Apartments, a recently completed 304-unit, Class-A garden-style multifamily community located in Round Rock, Texas, a suburb of Austin, according to Gary Goodman, Senior Vice President Acquisitions of Passco Companies.
“This acquisition furthers our company strategy to strategically invest in markets that are on pace for significant growth over the next decade,” explained Goodman. “Located only 23 miles from Downtown Austin in one of the most desired suburbs in the region, this recently completed property will provide Passco with a consistently high-quality asset for years to come.”
According to Goodman, Lone Oak Apartments was completed in 2014, and is currently 92 percent occupied.
“The area’s booming IT industry and a recent surge in development will continue to fuel the expansion of Austin in the coming years,” he added. “In fact high tech employment is up 30 percent since 2010, contributing to the area’s low unemployment rate of only 3.5 percent, which is far below the current U.S. national average.”
There are more than one million employees in the Austin MSA. The area’s largest employers include companies such as the University of Texas, Dell Inc., Seton Healthcare, IBM and Flextronics International.
Goodman notes that in addition to strong employment in the region, personal income growth is also expected to rise tremendously over the next five years, in some cases doubling national projections.
Recent development activity in the area has also increased occupancy levels. The Austin apartment market’s average occupancy rate is 94.4 percent, while the Round Rock area’s rate is as high as 97.8 percent, he noted.
“In both Austin and its Round Rock submarket, occupancy rates have increased each year for five consecutive years,” Goodman notes. “As occupancy climbs and Austin expands, renters will continue to look outside the downtown area for housing.”
Round Rock has seen significant growth on its own, according to Goodman, who notes that the area is home to several new hospitals, major retail shopping centers and new education facilities.
“Round Rock was recently named among the safest cities in the U.S., and also boasts an award winning park system and public schools,” he explains. “These factors are very attractive to the highly educated, high tech professionals who work in the Austin MSA and desire a high quality living environment for their families.”
According to Goodman, none of the local properties in competition with Lone Oak match this asset’s quality location or hill top views.
The property consists of 304 units across 16 three-story buildings, with one-, two- and three-bedroom floorplans. Units include vaulted ceilings, granite kitchen countertops, stainless steel appliances, full size washer and dryers, large direct access garages, garden tubs, gourmet kitchen areas, intrusion alarm systems, private patios and spacious walk-in closets.
The property also features a variety of luxury amenities including a clubhouse, business center, billiards/game room, cyber café bar, poolside BBQ grills, resort style swimming pool, pet park and fitness center.
Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged the financing through Fannie Mae for the acquisition of the property.
About Passco Companies, LLC
Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multi-family and commercial properties throughout the U.S.
For more than 15 years, Passco has delivered sound investment strategies to clients and partners, enabling them to create, maintain, and add value to their portfolios through a full set of real estate services, including investment advice, asset management, and brokerage, as well as property development, construction, and management services.
Headquartered in Irvine, California, Passco holds a diverse cross section of prime retail, multi-family, office and industrial properties nationwide, and has acquired, managed, and/or developed over $3 billion in property since its inception. The company is currently involved with 60 properties in 18 states, and is actively growing its investment portfolio in primary and secondary markets throughout the nation. More information is available at www.passco.com.
About KeyBank Real Estate Capital
KeyBank Real Estate Capital is a leading provider of commercial real estate finance. Its professionals, located across the country, provide a broad range of financing solutions on both a corporate and project basis. The group provides interim and construction finance, permanent mortgages, commercial real estate loan servicing, investment banking and cash management services for virtually all types of income producing commercial real estate. As a Fannie Mae Delegated Underwriter and Servicer, Freddie Mac Program Plus Seller/Servicer and FHA approved mortgagee, KeyBank Real Estate Capital offers a variety of agency financing solutions for multifamily properties, including affordable housing, seniors housing and student housing. KeyBank Real Estate Capital is also one of the nation’s largest and highest rated commercial mortgage servicers.
Corynne Randel / Jenn Quader
Brower, Miller & Cole
CRandel (at) browermillercole (dot) com