Big transaction: Austin apartments sold to Chicago investment company

Aug 13, 2014
Austin Business Journal

Northland at Stonehollow, a 606-unit apartment community in North Austin near the site where Charles Schwab Co. will build its new Austin facility, sold to a private Chicago investment firm

The seller was Massachusetts-based Northland Investment Corp., which owns numerous other apartment communities in the Austin market. The buyer was an entity formed by Heitman LLC

The price was not disclosed, though the Travis Central Appraisal District pegs the value of the community at 11915 Stonehollow Drive — which covers about 19 acres of land — at a little more than $26.3 million

Pat Jones, Austin principal of Apartment Realty Advisors, represented the seller

Northland at Stonehollow as built in 1996 and includes several resort features including a theater and two pools. The property was 95 percent occupied at the time of sale

“There were not many properties built in the 1990s in Austin due to the soft economy at that time,” Jones said. “Therefore, any time a 90s vintage property comes to the market, it is popular with investors.”

Jones said the great location created even more intense interest from potential buyers

He said that despite the influx of new construction, occupancy rates still hover around 95 percent across the Austin apartment market. Job and population growth continue to drive absorption of available properties

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