Knightvest Capital has acquired a three-property portfolio with 1,027 multifamily units in the Austin, Texas, metro. The close represents the 20th investment in Knightvest’s Fund II.
According to the vertically integrated multifamily investment firm, this acquisition provides the opportunity to add established communities and newer vintage assets at a reset basis in Round Rock, one of Austin’s strongest submarkets. The portfolio sits in the Silicon Hills corridor, with access to major employment centers, including Dell’s world headquarters in Round Rock, Apple’s second Austin campus, The Domain, Samsung, and Amazon.
The portfolio includes the 411-unit Enclave at La Frontera built in 2004, the 366-unit Lakeside at La Frontera built in 2001, and the 250-unit Legends Lake Creek built in 2001. Enclave and Lakeside are adjacent to one another in Round Rock’s La Frontera master plan, with Legends Lake Creek about 6 miles west in the Lakeline/Lake Creek submarket.
“The Silicon Hills portfolio is a compelling opportunity to acquire three well-located multifamily communities in one of Austin’s most desirable submarkets at a significant discount to both recent trades and replacement cost,” said founder and CEO David Moore. “Fund II was purpose-built to identify assets like these—properties we can renovate to a like-new standard while maintaining a substantially lower basis than nearly all comparable vintage communities and roughly half the cost of new construction.”
Knightvest plans to deploy its management platform across the portfolio and implement a comprehensive renovation program, with improvements to the exterior, common area amenities, and some unit interiors. The unit upgrades will include modern finishes and quartz countertops to position the properties more competitively with newer construction in the area. It also is rebranding the properties: Enclave at La Frontera will be renamed as Brixton; Lakeside at La Frontera as Calder, and Legends Lake Creek as Sutton.