Elco Landmark Partners in Acquisition of Four Multifamily Properties

By Anca Gagiuc, Associate Editor

Four garden-style multifamily properties in San Antonio and the Austin submarket of Round Rock have been acquired by a newly formed partnership between Elco Landmark Apartment Trust Holdings LLC, DeBartolo Development LLC and LEM Capital. The combined price is of approximately $44 million.

The four communities total 771 units with a 95 percent occupancy level. Amenities include a clubhouse, swimming pool, spa/hot tub, tennis courts, picnic areas, fitness center and laundry facility. Renovation and repositioning programs are planned in order to improve the physical structure and aesthetics of the properties, as well as to increase the value and financial gain opportunities.

The former Hampton North, today Landmark at Amelia Ridge, is located at 1500 Lawnmont Dr. in Round Rock, Texas. It has 188 units that were built in 1985. Landmark at Auburn Manor was known before acquisition as Vista Ridge and is located at 1200 South Mays St., also in Round Rock. Its 200 units were built in 1984.

The other two residential communities—Landmark at Atrium Commons and Landmark at Stratton Park—are located in San Antonio and were built in 1983 and 1985, containing 256 and 127 units, respectively.

“The acquisition of these assets is another example of our unique ability to source attractive investment opportunities in high-growth metropolitan markets located across the South,” said Joseph Lubeck, CEO of Elco Landmark Residential. “We look forward to leveraging our redevelopment and repositioning expertise to improve the quality of each asset, creating an enhanced living environment for tenants while allowing us to capture unrealized cash flow potential.” 

Elco Landmark Residential is a real estate investment firm headquartered in Tampa, Fla. that manages and owns interests in 17,762 units from 59 multifamily properties spread across the Southeastern part of the country. The company’s mission is to purchase mid-income multifamily properties below market value and reposition them on the South market where they have competitive advantage and plenty of expertise. DeBartolo Development LLC is one of the largest privately owned real estate development companies in the country, and LEM Capital is a real estate fund manager.

 Chart courtesy of Marcus & MIllichap

$500M Mixed-Use Trio of Towers Proposed for Downtown Austin

By Anca Gagiuc, Associate Editor

“Every project begins with a vision, and this is a grand vision on a great site,” said local real estate consultant Charles Heimsath about the proposed plan to build a $500M mixed-use project downtown Austin. If the plan receives approval from the city, the Austin skyline will change dramatically through the addition of three new towers, one of which could become the city’s tallest building.  

Developers Mac Pike and Wally Scott, principals of Sutton Company, revealed they plan to build the project on three acres of prime real estate along the banks of Waller Creek. This could become Waller Center, a trio of towers that includes a residential tower of 35 to 45 stories, an office/retail tower of 17 to 20 stories, and a condo/hotel tower that aims for 65 stories.

Shops and restaurants are part of the original plan, similar to the design of San Antonio’s Riverwalk. Pike said he intends to submit a site plan to the city in the next 90 days, hoping to start work on all three towers in mid-2014, pending city approvals.

The tract has no height limitations, as the area is zoned for dense downtown development, said Pike in an interview with the Austin American-Statesman. And it might stand a chance of becoming a reality thanks to a major equity player on board, Klabzuba Realty—a family-owned real estate, oil and gas investment company based in Fort Worth.

The Waller Creek tract is either owned or controlled by entities of local developer Perry Lopez, who says that “these are serious buyers with an ongoing substantial financial investment in the property.”

“They control it and are working on all aspects of use and design,” he adds. “Obviously, it is a real challenge to put together a project of this magnitude, but we feel they are up to it or we wouldn’t be working with them.”

While the estimated cost has been made public, the acquisition manager for Klabzuba, Paul Nauschutz Jr., did not reveal the extent to which the Fort Worth company would finance the project. He confirmed the partnership, meeting Heimsath’s opinion, who stated: “With a substantial equity partner in the deal, I think this project has a good potential to get over the finish line.”

Photo credits: www.mystatesman.com/

180,000-Sq.-Ft. Shopping Center Purchased by Misuma Holdings

By Anca Gagiuc, Associate Editor

Austin’s 180,000-square-foot shopping center, Lincoln Village, has just been purchased by veteran developers Misuma Holdings for an undisclosed sum. The new owner has not made public its plans regarding the repositioning of the acquisition, but the involved parties can await consistent changes throughout the year. Among the current tenants are Chase Bank, Gold’s Gym, the Marchesa Theater and Men’s Warehouse. 

Misuma Holdings had its eyes on the shopping center partly due to redevelopments that represent consistent growth in the area. Good indicators in this regard were the Highland Mall, remodeled by Austin Community College; the construction of several new residential communities; the revival of the Airport Boulevard; and the prosperous reuse of the Mueller Airport.

“Lincoln Village has the ingredients required for a successful real estate repositioning,” said in a news release Dean Davidov, partner at Misuma Holdings. “It is in a prime location at the intersection of Interstate 35 & Highway 290.  The shopping center is surrounded by several major developments in a growing and dynamic community.”

Davidov added: “We are excited to bring new vision and energy to the project including capital improvements, new and complementary tenants, re-branding, highway signage, and potential mixed use elements.  We expect the property to be the link between all the urban in-fill projects in central Austin.”

Beverly Hills-based Misuma Holdings is a commercial real estate development firm focusing on ample retail, office and mixed-use property types. With over 30 years of experience in the field, the company has owned and built over three million square feet of retail space across Texas, this next to other commercial properties nationwide. They are known for their interest in purchasing distressed commercial development projects, which through proactive involvement receive added value.

Photo credits: CBRE

Eleven Community to Open this Summer, Pre-leasing Underway

By Anca Gagiuc, Associate Editor

Located in one of Forbes’ “hippest Neighborhoods” in the heart of East Austin, the Eleven apartment community began pre-leasing on April 1, 2013 in the Haehnel Building on East 11^th Street. It will be ready to receive residents this summer.

The apartment complex is an elegant podium-style six-story building with 257 units that suit a wide range of lifestyle needs—studio apartments at 416 square feet, one-bedroom apartments at 678 square feet and two-bedroom apartments at 1020 square feet with island kitchens, 10-foot ceilings and vinyl wood plank floors. The exterior is a durable combination of native stone and stucco designed by award-winning Texas-based BGO Architects, and the interior design is the work of Kathy Andrews Interiors, an award-winning firm specializing in multifamily projects.

The Forester Group is the lead developer. They are working on the project together with the Canyon Johnson Urban Fund. Leasing and managing the Eleven community rests with Alliance Residential Company.

Amenity-wise, Eleven raises the stakes for high-end communities in the ever-growing city. Austin was recently ranked as the second Best Performing Metro City in the United States by the Milken Institute. The common swimming pool and lounge area with covered cabanas has its value increased by a rooftop lounge with breathtaking views of the Texas State Capitol. Additionally, a clubhouse with an open gaming area, billiards and shuffle board is complemented by a bicycle workshop.

Interest in health is shown through a fully equipped athletic facility on site, while the grills in the courtyard, a life-size chessboard and bocce ball will likely keep tenants outdoor for longer periods of time.

Karlin Real Estate Acquires 186,000-Sq.-Ft. Plaza 35

By Camelia Bulea, Associate Editor

Karlin Real Estate, one of the most active real estate investors in Austin, recently closed another acquisition. The Los Angeles-based investor purchased Plaza 35, a 186,000-square-foot property at 12234 N. I-35. The office complex is made up of two buildings that were built in 2000 and were owned by Stream Realty, according to the Austin Business Journal.

At the time of the sale, the Class B property was 100 percent occupied by Yodle Inc., VirTex Assembly Services and Logisticare Solutions LLC, adds the Journal. The two-building office center is considered to be a very attractive investment due to its strategic position, near the major intersection of Interstate 35 and U.S. Highway 183, which places it in the heart of the high-growth region of North Austin.

In the past three years, Karlin has been an active buyer in Austin. In the spring of 2011, Karlin Real Estate acquired from Dell a vacant 301,644 square-foot Class A corporate headquarters and manufacturing facility in northeast Austin in the proximity of Plaza 35. The property is located in the Tech Ridge area, a commercial and retail district containing Dell’s North and South Parmer Campuses, as well as several large retail centers.

“We saw this as a great opportunity to acquire a well located, institutional quality asset in a city that leads the nation in job growth,” said Managing Director Matthew Schwab.

Plaza 35, courtesy of LoopNet

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