Bow River Capital is acting fast to establish a multifamily portfolio across what it calls the “Rodeo Region.”
The Denver-based firm purchased Veranda Apartments, at 7205 East Ben White Boulevard in Austin, according to a release from Newmark, which secured financing for Bow River and represented seller, Wayfinder Real Estate.
Terms of the deal weren’t disclosed, but the property is assessed at $45.8 million, appraisal district records show.
Bow River Capital purchased the 362-unit property with partner Missio Capital. Veranda Apartments, which was delivered last year, is about 7 miles southeast of downtown, near the Austin-Bergstrom International Airport and the Tesla factory.
Bow River Capital coined and trademarked the term “Rodeo Region,” which refers to the Southwest and Mountain West states of Texas, Oklahoma, New Mexico, Arizona, Kansas, Colorado, Utah, Nevada, Nebraska, Wyoming, Idaho, Montana and the Dakotas.
The firm also recently bought two properties in Kansas City, Missouri and the 337-unit Camden Midtown, at 2303 Louisiana Street in Midtown Houston, from Camden Property Trust and rebranded it as Hadley Midtown Apartments.
Investors like Bow River Capital are calling bottom for Austin’s multifamily market, which has been wrecked by a historic glut of supply that resulted in big losses for rent rates and occupancy. Rents slid 7.5 percent last month, compared to a year prior, and occupancy fell to 85 percent, according to ApartmentData.com.
In fact, rents have fallen so much that the city leads the country in rental affordability, JLL’s Kai Pan said last month. Decreased rents, paired with high salaries, mean Austin renters, on average, spend 16.8 percent of their income on rent.
Austin’s tailwinds are promising, though, Pan said. In the last decade, the city has seen 30 percent population growth and 48 percent job growth. Its Sun Belt peers average growth rates of about 25 or 30 percent.
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