A major real estate investor in Austin has acquired a sizable apartment complex in the fast-growing suburb from a prominent developer based in the city.
Palladius Capital Management acquired the 342-unit, located in Kyle from Endeavor Real Estate Group, which completed the project earlier this year.
The sale price was not disclosed.
Kyle and other areas south of Austin have proven to be a popular market for multifamily construction and projects as of late.
The complex Palladius got is called Citizen House Kyle, and located along the I-35 Innovation Corridor, part of the larger Dry River District, which includes a 65-acre mixed-use community also being developed by Endeavor Real Estate Group. The deal for the apartment complex includes one- and two-bedroom units with amenities such as a resort-style pool, resident clubhouse, fitness center, outdoor lounge, and co-working space. The complex also includes some medical and retail space.
“Leasing up pre-stabilized Class A multifamily assets is a strategy that we’re focused on expanding, and we look forward to establishing similar partnerships with other merchant builders in our target markets,” said Palladius CEO Nitin Chexal.
The City of Kyle has seen rapid population growth over the years, jumping up over 85 percent since 2010 to around 50,000 residents.
Hays County – which contains Kyle – was recently ranked the second-fastest growing large county in the nation, based on U.S. Census Bureau data.
The growing population of The Innovation Corridor has led to increased demand for high-quality rental housing such as Citizen House Kyle in the wake of higher prices for single-family homes.
Indeed, home prices in Austin have surged so much recently that some residents are moving to other parts of the state in search of more affordable options, and on the national level, Austin saw the highest inventory jump in single-family homes back in July.
Citizen House Kyle is located within 15 minutes from Austin’s central business district and 15 minutes from San Marcos, both of which are two major employment centers in Austin that currently house such companies as Amazon, Tesla, Seton Medical, HBO, Best Buy, and H-E-B, the latter of which also recently broke into the thriving DFW market.
The property is also within walking distance of over 300,000 square feet of retail space that includes a Starbucks, a Home Depot, a Costco under construction, several dining options, and Evo Entertainment, a 75,000 square foot entertainment center with eleven screens, a 14-lane bowling alley, and an arcade.
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