Prime Finance Lends $27M on Austin Apartment Complex Acquisition
Austin, Texas-based private equity firm Old Three Hundred Capital has nabbed $27.1 million in acquisition debt from Prime Finance to buy an apartment community in Austin, Commercial Observer has learned.
The financing covered Old Three Hundred’s purchase of Cannon Oaks Apartments, a 12-building, 230-unit complex in Austin, with Denver-based asset management firm ArrowMark Partners as a capital partner, per information from advisory firm JLL, which arranged the financing. The mortgage closed in late September, as per information from Travis County property records.
JLL’s Marko Kazanjian, Chris McColpin, Rob Hinckley, Jackson Finch and Andrew Cohen sourced and arranged the financing on behalf of Old Three Hundred.
Old Three Hundred partners William Gottfried, Paolo Boero and Nicholas Yarnall led the execution of the purchase, and ArrowMark’s Rob Brown and Nathan Rillstone represented the firm in its involvement in the asset.
Gottfried said in a statement that the property and it’s newly-renovated amenities “unbeatable greenbelt views and a highly convenient location made for an extremely attractive investment. As the city and region continue to grow, the property is positioned to perform well, and it provides a naturally affordable alternative to like-kind assets in the submarket.”
Built in 2001, the property is situated on 18 acres at 2302 East William Cannon Drive, just south of Downtown Austin, and its assets together span roughly 230,000 square feet. The site has a clubhouse, a pool and a fitness center. Old Three Hundred plans to operate and manage the property, as per JLL.
“[The property] offers a dynamic work-live-play environment that has become increasingly more important for renters,” Old Three Hundred’s Yarnall said in a statement. “The unit makeup, including a majority of three- and four-bedroom units, outdoor space, close proximity to some of Austin’s best greenspaces, excellent communal amenities and flexible commuting choices make this an ideal rental option in the Austin area for both young professionals and families looking for more space, but at a better price point than single family options in the area.”
The property features one-, two-, three- and four-bedroom apartments that average 1,000 square feet and include in-unit washers and dryers and covered outdoor patios or balconies.
Monthly rents range from just over $1,000 for one-bedroom units to almost $1,700 for four-bedroom residences, as per information from Apartments.com.