384 Units In Austin, Texas

Key Highlights

Reservation Size $4,500,000
Minimum Investment $50,000
Cash on Cash Return 4% – 8% per year
Target IRR 20%
Term 5 year hold
Type Equity 506(b)
Equity Multiple 1.77-2.10X

We are pleased to announce that we have entered into contract to purchase the Hunt Club Apartments, 384 units in Austin, TX.  We have completed our inspections and are proceeding to complete this acquisition. The targeted close of escrow is August 15, 2022.  We’re aiming for investor commitments within the next ten days. Highlights of the investment are:

  • The last 6o leases have leased for an average premium of $393 over the average of the 324 older leases. This equates to a rental income upside of $1,526,992; divided by a 5 CAP, this represents $30,539,840 in equity upside.
  • Only 2 of the 384 units at Hunt Club have been renovated.
  • The property’s in-place rents are 38% to 42%, or $0.57 – $0.60 per foot, below those of nearby competing properties. Rents have increased at least 36.7% over the past 16 months in the Austin submarket within which Hunt Club is located.
  • The average in-place rent at Hunt is $1,214, versus the average Austin asking rent of $2,245.
    Hunt Club is located within Wells Branch, a suburban community catering to young professionals and families, 13 miles north of downtown Austin.
  • The $1 Billion Apple Campus is nearing completion 6 miles away. The Campus will ultimately house 15K employees.
  • There are 146K jobs employed by 11.5K businesses within 5 miles of the property.
  • We are buying at $210.9K per unit, approximately 64% of replacement cost. If the property’s parcel were to be redeveloped, however, it would be as mid-rise multifamily. We estimate that the parcel would accommodate at least 830 units if redeveloped.
  • The property is 20 minutes from downtown Austin and 10 minutes from downtown Round Rock, the area’s two major business districts and employment centers.
  • The McNeill Business Park, The Arboretum retail development, The Domain (300 acres of high-end office and retail) and the Burnett Road Corridor (1+MM sq. ft. of office under development, new stadium) are all within a 10- to 15-minute drive.
  • Over the past two years, over 100 tech companies have relocated to the Austin area. In December Facebook signed a 33-story lease in 67-story office building under construction downtown.
  • US News & World Report ranked Austin #5 out of 150 US cities that are the best places to live in 2021-2022 citing lifestyle and employment opportunities.
  • By 2030 Austin is projected to have a population of 3.2 million people; by 2040, nearly 4 million, which is double the current population.
  • We will reserve $6.25MM or $16.3K per unit, as part of the overall capital raise for interior upgrades to 300 units and continued improvements to the property.
  • We project an annual net return to investors in the range of 4% – 8% per year during a five-year hold period and an average annualized return including net sale profits of 20%.
  • Total equity raise is approximately $26MM. We are encouraging a minimum investment of $50,000.

Please let us know if you’d like to review the full marketing package.  Thank you for your consideration and looking forward to answering any questions.

Travis and Ron