AUSTIN, TX – The recent sale and financing of Regency Park, a 528 unit multi-family property in South Austin, and Travis at the Lake, a 312 unit multi-family community in West Austin built in 2018, were part of a 1031- Exchange This equates to more than $ 250 million in sales and financing. Regency Park provides access to downtown and Travis at the Lake offers views of Lake Travis.
The Regency Park was bought by Greystar, a rental investment, development and management firm that currently owns more than 45 properties in the greater Austin area. The unnamed Regency Park seller was a private investment group based in Naples, FL.
Patton Jones, vice chairman of Newmark Knight Frank, represented the Regency Park seller. Jones then represented the San Antonio-based seller Kairoi Residential in the Travis at the Lake deal to the Regency Park seller.
"This was a unique situation that started as a refinancing discussion and then led to a value-added sale and purchase of another property by 1031 Exchange," said Jones. "We were delighted to be able to meet the needs of three clients in one coordinated seamless transaction."
Both disposals were funded by Matt Greer, NKF Group's executive managing director for multi-family capital markets debt and structured finance in Austin.
"The sale of Regency Park and Travis at the Lake has represented more than eight months of work by our respective teams in unprecedented times," said Greer. "Greystar's purchase of Regency Park and Travis at the Lake made a meaningful entry into the value-added property class in Austin and offered the buyer the opportunity to trade in a world-class asset at historically low rates."
In the past 12 months, 303,650 units were shipped nationally, compared with 177,007 units absorbed. The largest markets in Texas (Austin, Dallas, Houston and San Antonio) account for 17.9% of national shipments last year, according to a report by Newmark Knight Frank in the second quarter.
“These transactions were completed back in June in the middle of COVID-19. However, both buyers and sellers are long-term investors who are very interested in the positive development of the Austin multi-family market, ”Jones told GlobeSt.com. “Today the city of Austin has one of the most positive multi-family markets in the country thanks to the strong employment growth attributed to large technology firms. In addition, there are few offers to meet the pent-up demand of buyers. "