Skyline Management Group is looking to offload nearly a third of its multifamily units in Texas, according to a listing with CBRE.
The Los Angeles-based multifamily firm has listed four apartment buildings near the Domain in North Austin. Altogether, the properties have 534 apartments, about 30 percent of Skyline’s 1,836 units in Texas, according to figures on the firm’s website. The asking price wasn’t listed.
The properties, built in the 1970s and ’80s, have a total of 343,500 rentable square feet. The apartments average 643 square feet, and around half have been renovated.
Ascent at North Burnet, a 160-unit development at 1735 Rutland Drive, is the least-modernized of the portfolio at 35 percent renovated. Ascent at Northgate, located at 1830 West Rundberg Lane, is 59 percent renovated, with updated units drawing a $173 premium.
Rents range between $1,000 and $1,200, or $1.70 to $1.90 per square foot.
The pace of rent growth in Austin has slowed significantly in the last year after several years of double-digit increases. That has made value-add plays, dependent on rent increases to cover debt service, a harder sell.
Central Texas is Skyline’s biggest market, accounting for some 56 percent of its portfolio. The firm owns 1,863 units across 9 communities in Austin and San Antonio.
The Domain has one of the biggest office markets outside of the Central Business District, with almost 3 million square feet of space. Hines will be adding another 500,000 square feet in the area, and it already inked a 320,000-square-foot lease with IBM. Amazon, Facebook and Indeed also have offices in the area, and slightly farther north, Apple is building a 3 million-square-foot campus for the firm’s Austin operations.
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