Villages At Turtle Rock

The Villages at Turtle Rock is a 356-unit institutional grade luxury apartment community developed and constructed by the GenCap Group on 16.7 acres in northwest Austin, Texas. Construction started in March 2008 and was completed in November 2009. The project achieved stabilized occupancy in August 2010 and refinanced the construction debt in October 2010. The property was sold for $37,736,000 ($106,000 per unit) in September 2011. The Limited Partners earned a 21.0% annualized IRR over the 45-month investment period.

Opportunity

• Opportunity to provide Class A, white collar rental housing to a fast growing population in Austin, Texas.
• Population Growth: Austin, Texas has experienced 28% population growth since 2000 and is routinely categorized as one of the nation’s top job markets and best places to live.
• Neighborhood in-fill site: The 16.7 acre site is surrounded by developed single family neighborhoods and is adjacent to an elementary and middle school.
• Convenient Access: The property is located off Anderson Mill Road which was recently expanded to connect US Hwy 183 to Parmer Lane.
• This northwest Austin apartment market has an average occupancy rate of 95% and average rents of $1.05 per square foot with little competition from new development.

Strategy

• Acquire the land, construct the project, achieve stabilized operations, refinance the construction loan and subsequently sell or hold the project and enjoy long-term cashflow.
• Target upscale, white collar employment base apartment market by offering resort-like amenities and service, open floor plans, covered and private garage parking, and by hosting several resident activity programs to build the community.

Execution

• Acquired the land.
• Designed and constructed the project with in-house general contractor.
• Project was completed on time and under budget.
• Supervised property operations from opening to achievement of stabilization of cashflow.
• Achieved highest rental rates in submarket.
• Absorbed 345 units (97% occupancy) in 14 months (averaged 25 leases per month during lease up).
• Successfully refinanced construction loan under Freddie Mac CME Program with a 10 year fixed rate of 4.49%.
• Proven sound investment strategy and execution during one of the worst economic downturns in the nation’s history.