The Park at Lakeline
The Park at Lakeline is a 352-unit institutional grade luxury apartment community developed and constructed by the GenCap Group on 25 acres in northwest Austin. Construction started in 2012 and was completed in 2015. The unit mix provided studio, one, two and three bedroom units with an average size of 785 square feet. The property featured an extensive pool/patio area with an outdoor cabana and community barbeque grills. Other amenities included a fitness center, Wi-Fi café, tanning booths, 3-acre dog-park, and resort style concierge services. The project achieved stabilized occupancy in 2015 and was sold in 2016 for $45,737,500 ($129,936 per unit). The Limited Partners earned a 24.5% annualized net IRR before taxes over a 48-month investment period.
- Austin, the capital of Texas, home to the University of Texas and a large number of high-tech companies, generates a large percentage of white collar housing to a fast growing, well-educated population.
- Population Growth: from July 2014 to July 2015, the Austin-Round Rock metropolitan area grew from 1,943,465 to 2,000,860, making it the fastest-growing metropolitan area with a population over 1 million for the fifth year in a row (Austin American Statesman) and is among the nation’s top job markets and best places to live.
- Mall Periphery Site: the 25-acre site is situated along South Lakeline Boulevard, one of the busiest direct access roads to Lakeline Mall. The site is surrounded by mall periphery retail and major employers. The site is also adjacent to a large city park.
- Convenient Access: The property is within 1 mile of Highway 183, a major north-south artery into the Austin CBD and Highway 45, a major east-west artery in North Austin. The site is in close proximity to a MetroRail station offering public transportation.
- Acquire the land, develop and construct the project, achieve stabilized operations and subsequently sell the project.
- Target upscale, white collar employment by offering resort-like amenities and service, open floor plans, covered and private garage parking, and by hosting resident activity programs to build a community.
- Design the apartment community with smaller average unit sizes to keep the check-writing rent competitive with surrounding new product and appealing to young professionals entering the job market.
- The apartment community has sufficient land to build an extensive dog park attracting young professionals who tend to delay household formation but have a dog instead.
- Acquired the land and developed and constructed a sustainable project with in-house general contractor achieving a National Green Building Standard certification.
- Substantial construction delays occurred due to a shortage of labor after the recession as the economy started to recover.
- The delay was quickly compensated by extraordinary strong leasing at well above proforma rent rates.
- Achieved 90% occupancy rate in 11 months.
- Achieved well above-market rents.
- Rapidly increased cash flow that produced an exceptional return at disposition.
THE PARK AT LAKELINE IS A 352-UNIT INSTITUTIONAL GRADE LUXURY APARTMENT COMMUNITY DEVELOPED AND CONSTRUCTED ON 25 ACRES IN NORTHWEST AUSTIN.
|PROJECT:||The Park at Lakeline|
|SUBMARKET:||Northwest Austin, Cedar Park|
|TYPE:||Class A Garden-style Multifamily|