The Kalikow family’s Gamma Real Estate has purchased an apartment portfolio in Austin, Texas, and a suburb of Raleigh, North Carolina, for $110 million.
The acquisition comprises two garden-style developments totaling 826 units.
“Consistent with our fundamental approach to acquisitions, this is a high-quality value-add portfolio in exceedingly strong economic centers,” said Jonathan Kalikow, Gamma’s president.
All three properties were acquired below replacement cost and have stable in-place cash flows, he said, adding that a total of slightly more than $3 million is earmarked for property upgrades.
The Austin developments are the 270-unit Elan Apartment Homes, situated on Research Boulevard near Hunters Chase Drive, in the Anderson Mill-Jollyville neighborhood; and the 290-unit Parmer Place development, on Dessau Road near East Parmer Lane, a short distance from Interstate 35, in an area known as Tech Ridge. Both are situated close to a host of major employers. They were opened in 2007 and 2008, respectively.
Austin was the nation’s fastest growing MSA (metropolitan statistical area) in population in 2016. Average effective rents grew by 6.7 percent.
The North Carolina acquisition, the 266-unit Carrington Park, which opened in 2007, is at Carrington Park Circle in Morrisville, near the junction of Interstates 40 and 540. Less than a mile away is Triangle Parkway, which leads directly to Research Triangle Park.
Raleigh-Durham comprised the ninth fastest growing MSA in the U.S. last year and was third in economic growth. Average effective asking rents also have been rising substantially.