past Full Cycle Investment

Park at Stone Creek

In October of 2013 Bridgeview Real Estate acquired the 420- unit Shadow Creek apartment community in Austin, Texas. While the investment thesis revolved around performing capital improvements and increasing rents, Bridgeview also believed that the project would benefit from a central location in a market with a strong economy (the 18.0-acre site just eight miles from Austin’s central business district).

The property’s purchase price was $22.0 Million ($52,381 per unit) and the development budget included $1.3 Million ($3,095 per unit) for renovations. Rents upon acquisition were approximately $0.88 per square foot, and the annual trailing net operating income (“NOI”) was approximately $1.4M (implying an entry cap rate of 6.36%).

Park at Stone Creek

Upon acquisition, Bridgeview rebranded the property (the new name is The Park at Stone Creek Apartments) and immediately commenced efforts to renovate the asset and improve the tenant base. Bridgeview’s efforts were well received in the market, and the property’s financial performance improved rapidly. By the fourth quarter of 2015, the property’s annualized NOI had increased to approximately $2.3 Million (an increase of over 60% from acquisition) and was generally earning rents of $1.10+ per square foot. On February 29th of 2016, Bridgeview sold the property to a California investor for $34.465 Million ($82,060/unit).

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PARK AT STONE CREEK

Multifamily Property | Austin, TX

Portfolio Performance


Project IRR

53.5%
Cash Multiple
2.61x
Hold Period
29 Months

Past performance is not indicative of future results.

AUSTIN AREA

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