2017 Bluebonnet Lane - Zilker Place Apartments

2017 Bluebonnet Lane was located in the highly desirable, residential Zilker Park neighborhood west of South Lamar Blvd. (a major artery to downtown Austin) and south of Barton Springs Road (direct access to Zilker Park/Barton Springs recreational amenities and MoPac State Highway, a north-south artery on the west side of Austin).

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Zilker Place consisted of 12, one bedroom/one bath units and 12, two bedroom/one bath units plus 24 parking garages. The value add strategy was to paint all units as they turned, adding new lighting fixtures, appliances where needed, refinishing counter tops and increasing rents by 50% in year two. Further upgrades included a metal roof, driveway repairs, new signage, updated landscaping and garage doors. In year two, the property was re-financed through Fannie Mae, returning equity to the partnership on the new assessed value. Over the hold period to 2018, rents were increased another 20% for a total of 70%. 

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Zilker Place was sold to a local investor generating a 6.73x equity multiple to Archway Capital.

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Units: 24

Asset Type: Multifamily

Hold Period: 6 years

Ave. Annual Cash on Equity Return: 15%

Equity Multiple: 6.73x

Total Return/Year: 96%

IRR: 51%

 

Role: Archway Sourced and Equity Partner.

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