Principal Asset Management Lists North Austin Apartment Complex

A large asset manager is looking to sell an Austin apartment complex amid fewer deals and slowed construction.

Principal Asset Management is shopping the Toscana Apartments, a 358-unit complex in northeast Austin. The property is at 13355 U.S. Highway 183, at the intersection of the highway and Anderson Mill Road.

It covers about 347,000 square feet and recently received $2.7 million in renovations to compete with new construction. The area around Toscana has received a surge of development to keep pace with the technology companies building and signing leases at offices in Silicon Hills, the region north of downtown Austin. The area has also gained a host of medical jobs in recent months, with the Dell Children’s Medical Hospital and Texas Children’s Hospital opening up just north of the apartments.

Toscana is also close to the $1 billion Apple campus that’s under construction. The apartments are about a 20 minute drive from downtown and 12 minutes from the Domain.

Principal acquired the complex shortly after it was built in 2001 and leased up. That long-term hold positions it to exit and still benefit from long-term price appreciation. Other multifamily players in Austin who bought during the price runup of 2020 and ’21 are facing slowed property value growth mixed with higher rates and debt costs, making it harder for short-term investors to profit.

A team of CBRE agents led by Charles Cirar has the listing. They did not include a minimum price on marketing materials, but bids are due by March 7.

Principal manages about $507 billion in assets, according to its website. Its real estate verticals include private equity and private debt. Austin has one of the country’s busiest multifamily development pipelines, but construction permits have declined dramatically, indicating a slowdown.