Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Palo Alto, a newly built 300-unit multifamily property in in Pflugerville, Texas.
“Multifamily transaction velocity slowed last year in response to the pandemic, but in a trend that began in the second half of 2020, investor demand for high-quality assets like Palo Alto was quick to return,” said Will Balthrope, IPA executive director. Balthrope, IPA’s Jordan Featherston and Drew Kile, along with Kent Myers, Marcus & Millichap senior vice president investments, represented the seller, Palo Alto Luxury Apartments LP, and procured the buyer, Oxford at Palo Alto LTD. “Multifamily assets in Northeast Austin, especially those near major employment hubs like the Palmer Innovation Center, Samsung, and Dell are among the most sought after,” added Featherston.
The property is 15 miles from Downtown Austin and close to top area employers such as Apple, Dell, IBM, and Vrbo. Shopping is nearby at Pflugerville Plaza and Windermere Center. The Art Institute of Austin and Austin Community College are within a short drive. “The Austin metro’s growing base of technology firms is bringing in high-paying jobs, and work has begun on a Tesla Gigafactory near the Austin-Bergstrom International Airport that will employ 5,000 people,” said Myers. Completed in 2021 on 14 acres near Interstate 35, the controlled-access community has carports, free Wi-Fi, a business center and a swimming pool and spa.
“Pre-stabilized sales like Palo Alto are becoming more common in the Austin market,” continued Featherston. “With an influx of new capital pouring into the market, fully marketed assets have been heavily competitive. In response, many buyers will now look to stay out in front of the competition by taking the lease-up risk.”
“IPA’s coverage of the Austin metropolitan area and all major markets in Texas is handled by one team, which contributes greatly to our ability to meet and surpass our clients’ expectations,” added Balthrope.