SAN FRANCISCO, CA (July 2023) — Polaris Real Estate Partners (PREP), a principal investor and manager of multifamily properties, is excited to announce its purchase of The Enclave, a 90 unit stabilized multifamily asset in Austin, TX.
Situated on 2.39 acres in rapidly gentrifying south Austin, The Enclave has excellent street frontage on Stassney Lane and is directly across the street from The Reserve, one of PREP’s most stable assets during its 2 years of ownership. Demonstrating consistent performance, The Reserve’s collected income for year two was 13.9% higher than projected.
“We have acquired The Enclave at a low cost per unit, despite Austin experiencing a 27% increase in rental rates since the beginning of 2021. We purchased the property all cash to eliminate financing risk in today’s challenging borrowing environment,” stated Travis Pacoe, General Partner of Polaris Real Estate Partners. General Partner Ron Abta further emphasized the unique advantage of The Enclave’s proximity to a proven asset, stating: “With the neighboring property, we have a strong opportunity to leverage existing resources and optimize operational efficiency between these two adjacent properties.”
The Enclave features a standard amenity package for garden style developments, including a swimming pool, BBQ and picnic area, courtyard, on-site laundry facility and dog park. The property has a mix of studios and one-bedroom floorplans and private yards for select units. Additionally, The Enclave is within the sought-after Round Rock Independent School district, consistently ranking among the top 10 school districts in the Austin metro area.
The Enclave is in close proximity to exceptional retail and employment opportunities. Some of Austin’s most popular retail and entertainment destinations are within walking or short driving distance of the property. The South Congress District (SoCo), Austin’s biggest shopping and entertainment district, is 2.5 miles away. The area surrounding The Enclave has a huge employment base from an extraordinary concentration of tech and financial services firms. The property has 54K jobs within 3 miles and is 1 mile from Highway 35, leading to downtown and other major employment drivers.
The technology and manufacturing growth that has driven Austin over the past decade is projected to continue for the foreseeable future. Austin’s current unemployment is just 2.7%, versus 3.8% for the country. For the second year in a row, Austin has been named the best tech city in the United States by CompTIA. Over the past two years, over 100 tech companies have relocated to the Austin area, adding numerous jobs. Notable tech companies located in the city include Google, Facebook, Atlassian, and Oracle with tens of thousands of workers. Apple’s North Austin campus has the potential to add another 15,000 workers to its exiting local headcount of 7,000. High tech employment in Austin has grown at nearly double the rate of the U.S average over the last 5 years.
Specializing in multifamily investment in the continental United States with 4,717 units under ownership and management, PREP’s senior management team has an average of 25 years of commercial real estate experience. As of December 2022, PREP’s average net return to its investors on the last 16 properties sold was 132%, or 29% annualized with an average investment period of 4.4 years. PREP, through its social impact programming, remains deeply committed to making a positive impact in the communities it serves while seeking individual properties or portfolios of 200 to 1,000 units in its targeted areas.