A joint venture between Old Three Hundred Capital and Sound Mark partners has purchased Summit at Rivery Park, a 228-unit luxury community in suburban Austin, Texas. A JLL Capital Markets team arranged $38.5 million in financing for the acquisition. QuadReal Finance provided the nonrecourse mortgage, which matures in five years and has a floating interest rate.
The community, located at 1400 Rivery Blvd. in the northern suburb of Georgetown, was built in 2015 and has a mix of one- to three-bedroom units between 576 and 1,410 square feet. Rents range from $1,235 to $2,350, according to the property’s website. Summit at Rivery Park’s amenity mix includes an infinity-edge swimming pool, a clubhouse, a fitness center and bike storage.
The property is within a larger, mixed-use development which includes additional residential space, in addition to a number of other assets. The Sheraton Austin Georgetown Hotel and Conference Center, home to 225 guestrooms and 30,000 square feet of meeting space, anchors the project. Additionally, the Texas Brownstones, a 121-unit townhome community, opened in 2012. Finally, a number of commercial spaces, including both office and retail, are located within the site.
One of the Hottest Markets
Austin has consistently ranked among the markets with the fastest-growing rents. This can largely be attributed to the massive influx of companies including Tesla, Google, Amazon, and Facebook, and subsequent population growth, particularly from higher-cost gateway markets like San Francisco or New York. Citing data from RealPage, an Austin American-Statesman article pegged rent growth at 15% in 2021, one of the steepest rates nationwide.