Austin, TX (Dec. 14, 2021) — Newmark announces it has completed the sale and financing of Nexus East, a newly constructed, 352-unit luxury multifamily asset in Austin, Texas. The seller was a partnership between Ardent Residential—an Austin-based real estate development firm specializing in multifamily properties—and Delta Development, based in Monterrey, Mexico. The purchaser was an affiliate of Treeline Multifamily Partners Ltd. (“Treeline”), a privately-held real asset investment management firm.
Newmark Vice Chairman Patton Jones and Managing Director Andrew Dickson represented the seller in the transaction. Newmark Executive Managing Director Timothy Weldon of the firm’s Debt and Structured Finance group helped secure the acquisition financing on behalf of the buyer. Newmark’s Central Texas Multifamily group was also involved in raising the equity for the site in 2019.
“Investors were intrigued by Nexus East’s location in the heart of East Austin, surrounded by some of our city’s best recreation and restaurants,” said Jones. “The nearly 3.5 million square feet of office space recently delivered, under construction or proposed further enhanced the investment opportunity as buyers saw how Nexus East sits in the middle of a developing live/work/play environment. This will be an outstanding addition to Treeline’s rapidly growing Central Texas portfolio.”
“The teamwork and dedication of Treeline and affiliates of Apollo Global Management led to an extremely efficient transaction,” said Weldon. “We were able to deliver favorable terms and a quick close.”
Nexus East, which delivered in 2021, features a mix of studio and one- and two-bedroom units and was 90% leased at the time of sale. Unit interiors feature high ceilings, vinyl wood plank flooring, gourmet kitchens and smart home packages. Property amenities include a resort-style pool, rooftop amenity deck with entertaining kitchen, modern clubhouse, spacious co-working space, fitness facility, bike storage rooms, putting green and large dog park and pet wash.
Located at 720 Airport Boulevard—at the confluence of Airport Boulevard, Highway 183 and East Seventh Street—Nexus East is just eight minutes from Austin’s CBD and five minutes from Austin-Bergstrom International Airport (ABIA). Additionally, the property is minutes from Tesla’s $1.1-billion automotive manufacturing facility currently under construction.
According to Newmark Research, 268,331 multifamily units were absorbed nationally during the third quarter of 2021, marking the highest quarterly absorption figure in history. As employees return to the office and the cost to own single-family homes continues to rise, rental housing is anticipated to see increased demand, supporting strong levels of rent growth through the end 2022. Austin ranked sixth among major U.S. metros for year-over-year effective rent growth—with rents rising 18.1%—for the 12 months ending in third quarter 2021.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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