Hartz Finalizes Acquisition of Trophy Multifamily Asset in Austin

Feb 21, 2014
CoStar

Hartz Mountain Industries, a Secaucus, NJ-based private real estate owner and developer, secured a prominent asset in downtown Austin with the acquisition of Whitley, a 266-unit trophy apartment complex, from a joint venture comprised of Principal Real Estate Advisors and Riverside Resources


The 5-Star multifamily community delivered in April 2013 at 301 Brazos St., a couple blocks inland of Lady Bird Lake. In addition to studio, one- and two-bedroom apartments, the property offers approximately 16,000 square feet of commercial space, 6,000 square feet of which is built out for a restaurant, and five floors of parking


There is approximately 750,000 square feet of office space currently being developed within walking distance of Whitley. Other nearby developments include a 1,000-room JW Marriot, which is being constructed adjacent to Whitley, and a new 342-room Westin Hotel and a 327-room Van Zandt Hotel, which have both broken ground within a five minute walk from the property


Hartz, which has made it a priority to acquire core multifamily properties located at "main and main" locations across the country, utilized CBRE for the second time in the last seven months to facilitate the transaction, following the company's purchase of the 184-unit Alto Apts. in downtown Seattle in July 2013. Jeff Dunne and Patrick Carino of CBRE negotiated on behalf of Hartz. Charles Cirar, also of CBRE, represented the selling venture. James Gunning and Donna Falzarano of CBRE's debt & equity finance group secured financing for Hartz


"Since entering the multifamily residential real estate market in 2010, Hartz has been strategic about choosing properties in markets that appeal to people who can afford to buy but choose to rent because they want to be in or near vibrant urban communities," said Emanuel Stern, COO and president for Hartz Mountain


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