Austin Investor Interests

$400/year
The Austin
Multi-Family
(877) APT-DATA
TREND REPORT
www.apartmenttrends.com
2ND Quarter 2014
COPYRIGHTED REPORT
Average Rent:
94%
$1,053
Average Square Feet:
Average $/SF:
3243
Steady Occupancy with Soaring Rents
Just the Facts...
Average Occupancy:
TC
852
$1.24
New Units Added (conventional): 2,134
Average Sales Price/Unit: $94,039
Did you know?
The statistics in this report are based on
conventional properties -unless otherwise
noted. For further information, all of our
data can be searched on the website.
2Q14 Affordable Housing Stats:
16,415 Units – 97.5% - $.93 psf
2Q14 Student Housing Stats:
10,459 Units – 95.9% - $1.53 psf
We appreciate the cooperation and support that
we received from all property managers,
assistants and owners.
Inside...
Occupancy
Page 2
Rental Rates
Page 2
Absorption
Page 3
Unit Mix Averages
Page 3
New Construction
Page 4
Construction Comparison Page 5
Sales
Page 6
Population/Job Growth
Page 7
Borders & Parameters
Website
The information contained herein was obtained from our industry
sources and other third parties, and we have used commercially
reasonable efforts to gather, verify, analyze and report such
information.
NONETHELESS,
WE
MAKE
NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND,
INCLUDING ANY WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR USE, WITH
RESPECT TO THE INFORMATION CONTAINED HEREIN. All
information should be independently verified by the user of this
report. Reproduction of this report in whole or in part is
prohibited without the prior written consent of Austin Investor
Interests, LLC.
The second quarter continued to reflect the health and vitality of the local
apartment market. Rental rates soared, rising another 2.6% over the quarter to
reach 6.9% annually, while occupancy remained steady at 94% despite seeing the
largest number of completions in five years hit the market over the last six months.
In addition, absorption rates over the last 90 days outpaced all other quarters seen
in the last four years.
With increased revenues, strong occupancy and plenty of demand, the market has
seen a few new trends worthy of noting. Expenses normally paid by the owner are
now being passed on to the tenant as non-optional fees. Cable, internet, valet trash
and pest control are some of the more common expenses that can average up to
$120 per month. Monthly pet rent has become much more common and now
averages about $25/mo. While not as prevalent yet, some properties are starting to
require mandatory renters insurance as well. In all, many expenses are being
passed on to the tenant as the market enjoys the ability to do so.
Another trend taking place is the addition of outdoor enhancements involving
common social/entertainment areas along with pet related features. Social/music
venues poolside, or in the lounging community center, is a prevalent new trend.
Resident gathering spots are being created around new fire pits, covered barbecue
areas, gazebos, pet parks, picnic areas and green spaces. Many of these items were
sparked by new development but are becoming more common place in mature
properties as well.
New product is changing the status quo of apartment living and older properties
will continue to be enhanced to remain competitive as the Class A market
expands. Over the next 12 months, the inventory of this class will rise nearly 44%
and become quite influential. While almost all sectors will receive new product,
half will see an increase of 30-90% of their current Class A inventory.
Unfortunately, the largest amount of new construction will occur in the central
sector where there are several pockets of concern. The latest reports reflect a lot of
leasing traffic in this highly desired area, yet many are unqualified candidates and
those that are qualified fear the inclusion of student living. It may be that despite
the desirability, there is a price ceiling in this area that needs to be explored.
For now the market enjoys heightened revenues and positive in-migration, along
with healthy job growth that will continue onward.
Published By:
Austin
San Antonio
(877) APT-DATA or (877) 278-3282
E-mail: [email protected]
Multi-Family Market
OCCUPANCY & RENTAL RATES
CLASS A
STAB CLASS A
CLASS B
CLASS C
OCC
RENT
OCC
RENT
OCC
RENT
OCC
RENT
BAS
93.9%
$1.00
93.9%
$1.00
99.4%
$1.02 100.0%
$0.73
C
77.0%
$1.87
91.7%
$1.86
93.0%
$1.81
92.0%
$1.55
CBD
82.0%
$2.52
90.5%
$2.49
82.6%
$2.24 100.0%
$1.60
CP/L
89.6%
$1.19
95.1%
$1.12
97.0%
$1.06
99.1%
$0.96
FN
91.4%
$1.26
95.6%
$1.19
96.7%
$1.09
96.7%
$1.20
FNW
89.0%
$1.05
96.1%
$0.98
94.0%
$1.02
N
87.6%
$1.50
90.1%
$1.43
96.9%
$1.08
NE
80.8%
$1.63
92.0%
$1.52
94.9%
$1.19
95.9%
$1.04
NW
91.9%
$1.18
95.1%
$1.15
96.6%
$1.13
97.0%
$1.09
NWH
94.8%
$1.27
94.8%
$1.27
95.6%
$1.29
95.4%
$1.21
RR
93.0%
$1.10
95.4%
$1.09
97.9%
$1.08
98.1%
$1.03
S
90.4%
$1.29
95.5%
$1.23
95.6%
$1.20
96.5%
$1.29
SE
80.3%
$1.56
93.8%
$1.44
95.0%
$1.11
95.3%
$1.16
SM
92.8%
$1.20
94.4%
$1.19
94.1%
$1.19
94.0%
$1.03
SW
91.0%
$1.30
95.6%
$1.28
95.4%
$1.33
94.6%
$1.47
WMS
96.1%
$1.12
96.1%
$1.12
97.9%
$1.06
99.4%
$1.22
TRAVIS
87.0%
$1.50
94.1%
$1.45
95.6%
$1.22
95.8%
$1.20
AUSMSA
89.0%
$1.39
94.5%
$1.34
95.9%
$1.18
95.9%
$1.17
144 props (22%)
166 props (25%)
353 props (53%)
% of
106 props (16%)
Total
38,463 uts (25%) 29,832 uts (20%) 50,692 uts (33%) 63,377 uts (42%)
2Q14
TOTALS
OCC
RENT
97.4%
$0.91
87.5%
$1.72
82.8%
$2.46
93.7%
$1.11
95.1%
$1.16
93.5%
$1.03
96.2%
$1.12
93.0%
$1.19
95.7%
$1.13
95.4%
$1.25
96.2%
$1.08
94.3%
$1.28
93.0%
$1.22
93.6%
$1.12
94.4%
$1.34
97.3%
$1.11
93.8%
$1.28
94.1%
$1.24
663 props
152,532 units
QTR CHANGE
OCC RENT %
-0.7%
1.7%
-4.7%
0.7%
-0.3%
0.6%
3.7%
3.1%
0.9%
2.9%
-0.7%
-0.6%
-0.1%
2.9%
1.5%
4.5%
1.6%
2.7%
-0.3%
2.2%
0.4%
5.4%
0.6%
2.5%
-0.2%
2.3%
-0.7%
-2.4%
-0.6%
3.9%
0.1%
2.8%
0.1%
2.6%
0.1%
2.6%
ANN CHANGE
OCC RENT %
-0.7%
2.1%
-7.3%
4.6%
-4.4%
2.7%
1.5%
8.1%
-0.4%
6.3%
-2.7%
5.0%
-0.2%
8.0%
-3.3%
12.0%
0.5%
5.6%
-1.0%
5.6%
0.0%
5.5%
0.5%
5.9%
-2.0%
11.8%
2.6%
2.8%
-1.4%
5.9%
4.3%
8.8%
-1.5%
7.2%
-1.0%
6.9%
Rates include properties under construction with rentable units. Please refer to www.apartmenttrends.com for property specific information. Stabilized Class A statistics have been broken out
and include properties that are less than 12 months old. Totals include all Class A properties.
On par with the second quarters of the prior two years, the
last three months saw minimal movement in occupancy,
which increased only .14% to reach 94.1%. Annually,
however, this represents a .97% decrease. Conversely,
overall effective rental rates continued their ever-increasing
climb, rising 2.55% during the quarter to reach $1.24 psf.
This reflects an annual increase of 6.87% over the same
time last year.
Most of the decline in occupancy and the increase in rent
during the quarter can be attributed to the new unit additions
that averaged $1.56 psf, with an occupancy of 70%. These
units pushed rents up 1.6% while holding occupancy back
1.5%. Overall stabilized units reflect an occupancy of 95.6%
and an effective rental rate of $1.34 psf.
At this time of year, occupancy is usually found to be
fluctuating in the student-oriented areas of the S, NWH, and,
to a greater extent, the C and SM sectors. However, all were
off their norm with little or no decline reported – except in
the C sector. Here, and in some of the surrounding areas,
occupancy was down twice as much as usual and continued
to struggle for the third consecutive quarter. Not a good
place to be with an imminent inventory increase of almost
30% coming over the next year.
Submarkets that welcomed large amounts of new unit
additions reported positive results during the quarter. The
CP/L area was up 4% after increasing it’s inventory by 17%,
while the FN, NE and S sectors also fared well, all rising .61.5% after heavy unit additions.
HISTORICAL OCCUPANCY
HISTORICAL RENTAL RATES
By Class
100.0%
By Class
$1.50
$1.40
95.0%
$1.30
90.0%
$1.20
85.0%
$1.10
$1.00
80.0%
$0.90
75.0%
$0.80
70.0%
Class A
Class B
Class C
Austin Investor Interests, LLC (877) APT-DATA
Class A
Page 2
Class B
2Q14
4Q13
2Q13
4Q12
2Q12
4Q11
2Q11
2010
2008
2006
2004
2002
2000
1998
2Q14
4Q13
2Q13
4Q12
2Q12
4Q11
2Q11
2010
2008
2006
2004
2002
2000
1998
$0.70
Class C
Copyright ©2014
Multi-Family Market
UNIT MIX AVERAGES
Efficiency
SF
RENT
459
$921
576 $1,575
531
$727
532
$828
507
$747
411
$564
400
$642
466
$611
429
$702
586
$704
437
$748
468
$833
428
$668
437
$871
447
$579
448
$806
457
$790
2Q14
BAS
C
CBD
CP/L
FN
FNW
N
NE
NW
NWH
RR
S
SE
SM
SW
WMS
TRAVIS
AUSMSA
4,569 Units
3.0%
% of TTL
1 Bedroom
SF
RENT
684
$709
685 $1,198
821 $2,020
746
$867
710
$859
811
$882
637
$730
669
$811
731
$866
711
$907
743
$814
685
$914
662
$844
658
$821
770 $1,042
725
$870
705
$957
708
$936
2 Bedroom
SF
RENT
956
$803
1,006 $1,626
1,297 $3,158
1,065 $1,093
1,059 $1,100
1,128 $1,116
919
$913
975 $1,017
1,061 $1,101
1,042 $1,206
1,014
$987
1,002 $1,158
983 $1,074
916
$977
1,098 $1,347
1,031 $1,052
1,033 $1,232
1,028 $1,185
83,357 Units
54.6%
57,237 Units
37.5%
3 Bedroom
SF
RENT
1,224 $1,118
1,278 $2,283
2,019 $4,458
1,276 $1,274
1,322 $1,348
1,434 $1,508
1,089 $1,040
1,299 $1,333
1,426 $1,355
1,408 $1,685
1,275 $1,227
1,270 $1,379
1,298 $1,309
1,196 $1,308
1,332 $1,595
1,379 $1,293
1,332 $1,584
1,327 $1,493
6,784 Units
4.4%
While occupancy fluctuated among the submarkets, ending
flat overall, effective rental rates continued an upward climb,
rising $27 over the quarter, from $1,829 to 1,856/mo.
Concessions held further increases back, with over 29% of the
market offering specials. While the cost of these incentives
remained low overall, there were pocket areas in which they
were quite prevalent and are expected to be on the rise in
upcoming quarters as new product creates market competition
Within the classes, over 50% of Class A properties offered
specials, with rental rates at $1.39 psf and occupancy up 1.4%
to reach 89% overall. Despite the quarterly increase, this
represents a 2.6% annual decline. However, as shown in the
chart on page 2, stabilized product in all sectors, with
exception to the C, CBD, N and NE, was found achieving an
occupancy very near or above the 94% total average and
rental rates were up nearly 11% to reach $1.34 or $1,258/mo.
4+ Bedroom
SF
Rent
1,490 $2,690
1,395 $1,230
1,910 $2,095
2,146 $2,061
1,500
$960
1,800 $1,875
1,691 $1,512
1,417 $1,345
1,267 $1,282
1,870 $2,446
1,707 $1,815
1,800 $1,854
1,759 $1,856
.549 Units
.4%
Overall
Concess
#
SF
Rent
Adjust Props.
883
$802
0.0%
23
799 $1,372
0.5%
577
986 $2,425
1.2%
211
925 $1,027
0.5%
153
851
$989
0.1%
513
1,038 $1,064
1.3%
165
725
$809
0.4%
303
791
$939
0.7%
343
894 $1,009
0.1%
499
849 $1,060
0.1%
408
911
$982
0.6%
269
819 $1,044
0.8%
442
791
$966
1.1%
446
813
$912
2.0%
168
921 $1,234
0.2%
391
911 $1,014
0.1%
102
841 $1,077
0.5%
510
852 $1,053
0.5%
657
Please refer to Apartmenttrends.com for property specifics.
Rents in Class B were up 2.8% to reach $1.18 psf or
$1,105/mo. Concessions also increased in this class with 31%
of properties reporting reduced rates. Notable rent increases
during the quarter were found in the CP/L (4%), SW (5%),
RR (8%) and WMS (7%) areas. Declines were reported in the
C (–1.6%), FNW (-1.5%) and SM (-4%).
The gap between Class B and C rents widened slightly over
the quarter, with rents rising 2.3% to reach $1.17 or $831/mo
in Class C. Likely due to migrating students, the CBD and SM
were the only sectors to decrease rents, down 1.6% and 4%
respectively. Occupancy fell for the third consecutive quarter
in this class but still remains at an impressive 96%.
All bedroom types reflected a quarterly rent increase, with
one- and two-bedroom units rising an average of 2.5%, or
$24-29/mo. Three-bedroom units rose 4%. or $55/mo, while
the unpredictable four-bed units declined .4% or -$8/mo.
Efficiencies were on the upswing, rising 4% or $31/mo.
HISTORICAL RENT & OCCUPANCY
100%
$1.45
95%
$1.35
90%
$1.25
$1.15
85%
$1.05
80%
$0.95
75%
$0.85
70%
$0.75
65%
60%
$0.65
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Occ up
94. 0% 92.6% 95.5% 96. 1% 96.6% 96.0% 92.2% 89.1% 88.0% 89.7% 92.2% 93.4% 93. 5% 91.3% 88.2% 92.0% 94.98 95. 3% 95.1% 95.1% 95.8% 94.8% 94.0% 94.1%
Rents
$0.77 $0.78 $0.80 $0.85 $0.89 $0.97 $0.98 $0.88 $0.84 $0.81 $0.83 $0. 89 $0.94 $0.97 $0.93 $0.96 $1.03 $1.09 $1.12 $1.15 $1.18 $1.19 $1.20
Austin Investor Interests, LLC (877) APT-DATA
Page 3
$0.55
$1. 24
Copyright ©2014
Multi-Family Construction
New Construction:
1 – 5100 South Congress
2 – Belterra
3 – Broadstone at Parmer
4 – Burnet Market Place
5 – Domain Parkside Block K
6 – Lakeline West
7 – Legacy at Southpark
8 – Millenium Rainey
9 – Oak Creek Village II -Ph. 1 (AH)
10 – Star Ranch Townhomes
11 – Still Waters Ph. I
12 – Trails at Plum Creek Ph. I
13 – Vantage at Georgetown
Continued Construction:
1 – 3 Eleven Bowie
2 – 422 at the Lake
3 – 7 East
4 – 7 Rio
5 – 704, The
6 – Abacus Southside
7 – Addison on Burnet
8 – AMLI Covered Bridge
9 – AMLI Mueller Town Center
10 – Aspen San Marcos (SH)
11 – Aura Wells Branch
12 – Broadstone Arboretum
13 – Broadstone Cordevalle
14 – Burnet Flats
15 – Camden La Frontera
16 – Camden Lamar Heights
17 – Capital Studios (AH)
18 – Capstone Cottages of San Marcos (SH)
19 – Catherine
20 – Cielo South Lamar
21 – Coldwater
22 – Corazon
23 – Crest at Pearl (SH)
24 – Echo
25 – Eight 17 Lofts (SH)
26 – Elan East
27 – Escape at Four Points
28 – Estates at Bee Cave
29 – Ethos Ph. I
30 – G Austin, The (SH)
31 – Gables Park Towers
32 – Gateway Northwest (AH)
33 – Green Spring
34 – Green Water Block 1
35 – Hanover South Lamar
36 – IMT at the Domain
37 – Kenzie at the Domain
38 – Koenig Apts.
39 – Lakeshore Pearl Ph. II
40 – Lamar Union
41 – Landmark Conservancy
42 – Lone Oaks Ph. I
43 – Madrone
44 – Mansions at Lakeline
45 – Marquis at Barton Trails Add.
46 – Merritt Legacy (AH)
47 – Muir Lake
48 – Paddock at Norwood (AH)
49 – Park at Lakeline
50 – Parkway Falls
51 – Pointe on Rio (SH)
52 – Regents West at 24th Street (SH)
53 – Riverhorse Ranch Ph. II
54 – Sienna Pointe (AH)
55 – South Shore District Ph. II & III
56 – Spring Brook Ph. I
57 – Steiner Ranch
58 – Summit at Rivery
59 – Uptown Square (SH)
60 – Waters at Willow Run (AH)
61 – Westinghouse Pointe
62 – Whitestone
63 – Zilker on the Park
Austin Investor Interests, LLC (877) APT-DATA
Submarket
S
SW
NW
N
FN
CP/L
S
CBD
C
WMS
SE
SM
WMS
Submarket
CBD
C
NE
CBD
S
S
FN
SW
NE
SM
FN
NWH
RR
C
RR
C
CBD
SM
C
S
C
NE
CBD
C
SM
NE
FNW
SW
SE
CBD
CBD
WMS
SM
CBD
C
FN
FN
C
SE
C
SW
RR
SW
NW
SW
CP/L
CP/L
NE
CP/L
SM
CBD
C
FN
SM
SE
FN
FNW
WMS
SM
NW
WMS
NW
C
3,480 units
352 units
152 units
376 units
342 units
316 units
344 units
250 units
325 units
173 units
60 units
256 units
246 units
288 units
16,729 units
358 units
207 units
186 units
220 units
378 units
140 units
380 units
230 units
279 units
240 units
348 units
330 units
280 units
179 units
300 units
314 units
135 units
194 units
300 units
357 units
225 units
256 units
141 units
274 units
75 units
251 units
344 units
316 units
372 units
79 units
223 units
180 units
100 units
439 units
340 units
755 units
279 units
210 units
295 units
443 units
240 units
304 units
228 units
400 units
157 units
208 units
332 units
228 units
352 units
192 units
122 units
93 units
278 units
228 units
256 units
270 units
302 units
228 units
316 units
242 units
250 units
340 units
213 units
Page 4
As the type size on the construction list
diminishes, so does the number of new
submittals. For the second consecutive quarter,
permit filings were barely existent in
comparison to totals of the prior two years.
However, the large number of previously
submitted projects, that totals over 48
properties with 10,871 units, reflects the
potential for more units to start.
Furthermore, the 6-9 month entangled
permitting process pushed out approvals on 10
properties during the quarter, enabling 13
more projects to start. These units, coupled
with those already under construction. total 76
properties with 17,702 units yet to come.
Current construction is widely dispersed.
However, several areas will have notable
increases in Class A product over the next
year. The C submarket accounts for over 16%
of active development and, upon completion,
will see a 90% increase in Class A units,
nearly doubling the current stock. To a lesser
degree the same applies in the CP/L, NE and
SW sectors that will each add 35-40% to their
Class A inventories over the next 12 months.
CURRENT NEW CONSTRUCTION
Per Submarket
Units Under Construction, Submitted, Approved
and in Pre-Development
SM
WMS
SW
SE
S
RR
Construction - 17,702 Remaining
Approved - 4,052
Submitted - 9,894
Pre-Dev./Proposed - 4,903
NWH
NW
NE
N
FNW
FN
CP/L
CBD
C
0
1000
2000
3000
4000
5000
6000
Copyright ©2014
Multi-Family Construction
2Q14
CNV HSG: Absorption & Units Added
2Q14
Rentable New Uts Net Unit Absrbd
Units
Added* Change*
Units
BAS
734
-6
C
8,361
326
310
-107
CBD
2,867
30
30
18
CP/L
4,648
186
186
338
FN
19,772
436
436
590
FNW
4,940
106
106
67
N
10,763
120
109
91
NE
9,487
174
249
371
NW
16,999
25
22
293
NWH
13,697
-4
-45
RR
10,032
139
139
173
S
13,897
242
242
314
SE
14,373
209
265
215
SM
6,253
69
109
57
SW
13,039
72
75
-13
WMS
2,670
-5
-1
TRAVIS
119,082
1,926
1,839
1,795
TOTAL
152,532
2,134
2,269
2,356
OVERALL ABSORPTION
5,000
Units A bso rbed
Net Units A dded
4,000
3,000
2,000
1,000
0
-1,000
CNV: New Development Summary
Last 12 Months
Next 12 Months
New Units Occ in
Est
Est
Added New Units Starts Complete
689
35.41%
963
2,398
510
50.78%
762
611
809
83.73%
898
745
1,054
82.10%
863
1,350
118
68.64%
246
386
246
82.11%
608
59.05%
995
717
786
81.53%
1,138
1,045
330
164
42.68%
312
720
828
65.90%
729
960
797
57.84%
823
618
412
88.21%
443
311
326
56.44%
1,742
991
410
6,502
65.4%
8,615
10,151
7,347
69.8%
9,914
11,592
*Only conventional numbers are reflected in the charts of this report. New units added reflects only those units that have been
added from new construction during the quarter. Net unit change includes new units added and existing units that have been
added or deleted from inventory. Completions and starts are rough estimates of developer expectations. Occupancy may include
units completed prior to the 12 months shown. Please refer to www.apartmenttrends.com for property specific information.
3Q13
3Q12
3Q11
3Q10
3Q09
3Q08
3Q07
3Q06
3Q05
-2,000
3Q04
The advancing pace of new construction is set to reach historic
levels as 21 projects with nearly 5,500 units are scheduled to
break ground over the next 90 days. These developments,
along with other currently scheduled starts, total 37 new
projects, with 9,914 conventional units, breaking ground over
the next 12 months. Also anticipated are 11 student/affordable
properties with 1,948 units.
Completions over the next year are expected to total 11,592
units, the bulk of which are located in the C (21%), FN (12%)
S, SW and NW (8-9%) sectors. Nearly 40% of these units are
high to mid-rise apartments in the central core or domain
districts. Over 6,400 units are expected in the next six months
and unfortunately, due to construction delays, many
completions will roll over into the slower fourth quarter.
As seen in the chart to the left, there
were 2,134 new conventional units
added during the quarter. Units
returned or removed from the
market, because of rehabs or
conversions, left a net unit gain of
2,269 units. Annual completions
were up 35% over the prior year to
reach 7,347 new additions. There
were also 1,477 new student,
leased-by-the-bedroom units added.
Absorption was impressive with
2,356 more units occupied during
the quarter to reach an annual five
year high of 5,676 units.
Most sectors absorbed an amount
nearly equal to or a bit above their
total additions. High developing
areas, such as the S and FN, which
struggled last quarter, reported gains
that made up for the prior losses.
However, the C sector reflected a
strong negative in comparison.
HISTORICAL CONSTRUCTION ACTIVITY
Quarter-by-Quarter Comparisons
Activity
Starts (TTL)
Submittals (TTL)
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
539
2,425
2,234
3,765
2,616
2,659
4,965
1,445
2,170
3,175
1,364
2,140
3,480
2,207
5,313
1,960
4,908
2,883
2,628
5,837
2,441
3,281
2,301
3,061
1,049
798
New Units Added (CNV)
171
95
292
94
421
1,128
961
1,101
1,645
1,338
1,794
2,081
2,134
Net Unit Change (CNV)
-377
591
420
-30
685
1,121
908
823
1,817
1,128
1,727
2,399
2,269
Absorption (CNV)
429
2,288
-949
185
666
1,901
-345
1,093
1,696
2,028
296
996
2,356
Occupancy (CNV)
94.7
95.9 95.0%
95.2
95.2
95.8
94.9
95.1
95.1
95.8
94.8
94.0
94.1
Austin Investor Interests, LLC (877) APT-DATA
Page 5
Copyright ©2014
Multi-Family Sales
Although investment opportunities are sought
throughout the Austin area and continue in high
demand, the supply of active listings remains quite
low. At the quarter’s end, there were only 26
properties actively being marketed and nearly half
already had contracts pending. The number of
offerings may pick up by year-end, as many loans
are in process of maturing.
Despite the lack of supply, there were 21
transactions over the quarter with an average price
per unit of $94,039 or $115/psf. Class A and C
properties were equally represented and averaged a
price per unit of $106,562 and $82,494, respectively.
Private banking institutions and life companies
remain aggressive lenders with rates at +/- 4% for a
seven to ten year loan. In addition, investors are
found paying premium prices for local product.
Reported cap rates have been averaging 4.25-5% for
new Class A product in the urban areas, while
suburban averages 5.75%. Class B assets noted cap
rates near 5.5-6.5%, while Class C averaged 6-7%.
2nd QUARTER SALES
Submarket Units
Project
1 – 5th Street Commons
2 – Allure, The
3 – Arbor Pointe
4 – Crest Round Rock
5 – IMT at the Domain Ph. 1
6 – Landing Double Creek
7 – Manor Palms (AH)
8 – Mason Manor
9 – Mission Reilly Ridge
10 – Orion Star Ranch
11 – Orion Stonehill
12 – Pressler
13 – Purgatory Creek
14 – Retreat at Barton Creek
15 – Sienna Pointe (AH)
16 – Stonewood Village
17 – Trails of Walnut Creek
18 – Triple Crown II - Canyon Villas I
19 – Triple Crown II - Canyon Villas II
20 – Victorian Villages
21 – Vue, The
HISTORICAL SALES PRICE/UNIT
$110,000
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
C
CP/L
SE
RR
FN
S
NE
NE
SE
WMS
FN
C
SM
S
SM
C
FN
NE
NE
WMS
NE
150
334
344
224
315
293
124
140
300
402
370
168
286
600
228
59
156
60
100
98
156
Due to sales confirmation delays, some sales may not be reported. Access
all sales back to the 1990’s at www.apartmenttrends.com
through your subscription or on a pay-per-report basis.
$40,000
$30,000
$20,000
2004
2006
2008
2010
2012
1Q14
ANNUAL SALES PRICE PER UNIT BY SUBMARKET
Class A
Class B
Class C
$200,000
$175,000
$150,000
$125,000
$100,000
$75,000
$50,000
$25,000
$0
C
CBD
FN
FNW
Austin Investor Interests, LLC (877) APT-DATA
N
NE
NW
Page 6
NWH
RR
S
SE
SM
SW
WMS
Copyright ©2014
Market Snapshot
CURRENT CONSTRUCTION
Rentable CNV Const
% of
Units
Remaining Inventory
2Q14
BAS
CNV COMPLETIONS
12 MOS
24 MOS
C
8,361
2,430
1.6%
8.2%
13.8%
-18
87.5%
-7.3%
$1.72
0.75%
$117,928
CBD
2,867
1,375
0.9%
17.8%
27.1%
321
82.8%
-4.4%
$2.46
0.59%
$392,000
N
97.4%
-0.7%
$0.91
ANNUAL
SALES $
Per Unit
-
FNW
-5
RENTAL RATES
Annual
2Q14
Change
-
FN
-
OCCUPANCY
Annual
2Q14
Change
734
CP/L
-
ABSORP
Last 12
Months
1.71%
-
4,648
647
0.4%
17.4%
22.9%
814
93.7%
1.5%
$1.11
3.11%
-
19,772
1,886
1.2%
5.3%
11.7%
742
95.1%
-0.4%
$1.16
2.87%
$87,670
4,940
528
0.3%
2.4%
2.4%
-21
93.5%
-2.7%
$1.03
-0.63%
$125,826
10,763
342
0.2%
2.3%
4.3%
263
96.2%
-0.2%
$1.12
2.87%
$50,033
NE
9,487
922
0.6%
6.4%
6.4%
351
93.0%
-3.3%
$1.19
4.50%
$52,030
NW
16,999
1,116
0.7%
4.6%
5.8%
806
95.7%
0.5%
$1.13
2.71%
$91,652
NWH
13,697
330
0.2%
0.0%
1.4%
-116
95.4%
-1.0%
$1.25
2.20%
$124,571
RR
10,032
720
0.5%
1.6%
1.6%
164
96.2%
0.0%
$1.08
5.39%
$112,575
S
13,897
1,267
0.8%
6.0%
12.4%
960
94.3%
0.5%
$1.28
2.52%
$106,750
SE
14,373
934
0.6%
5.5%
7.1%
672
93.0%
-2.0%
$1.22
2.35%
$87,168
SM
6,253
391
0.3%
6.6%
17.0%
503
93.6%
2.6%
$1.12
-2.36%
$99,710
SW
13,039
1,323
0.9%
2.5%
2.7%
133
94.4%
-1.4%
$1.34
3.88%
$152,953
2,670
826
0.5%
0.0%
6.7%
110
97.3%
4.3%
$1.11
2.75%
$104,045
TRAVIS
119,082
12,301
8.1%
5.5%
9.1%
4,085
93.8%
-1.5%
$1.28
2.59%
$68,504
AUSMSA
152,532
15,037
9.9%
4.8%
8.0%
5,677
94.1%
-1.0%
$1.24
2.55%
$91,825
WMS
PRODUCTS, SERVICES and PRICING
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Includes full access to complete apartment information including ▪ comprehensive property details ▪ complete market analysis ▪
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rental rates, new construction, absorption and sales.
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Includes the essentials for both current and historical sales transactions with the ability to define your own search criteria. Property
details are integrated and sales specifics include grantee, grantor, total consideration, price per unit and terms (when available).
New Construction
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$400/year or $175/Qtr.
The all-inclusive and in-depth reporting of properties in the development pipeline. Each property’s known status is reported in
quarterly detail with contact information and pertinent dates for the development process.
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For additional information, call us or visit our website at
www.apartmenttrends.com or (877) APT-DATA
Austin Investor Interests, LLC (877) APT-DATA
Page 7
Copyright ©2014
Multi-Family by Decade
<1970
2Q14
Occ
BAS
Rent
1970s
% of
Inv
Occ
Rent
1980s
% of
Inv
Occ
Rent
1990s
% of
Inv
Occ
Rent
2000s
% of
Inv
Occ
-
-
-
-
-
-
100%
$0.73
0.7%
-
-
-
C
95.0%
$1.61
33.0%
90.0%
$1.53
12.5%
92.1%
$1.48
0.8%
94.3%
$1.77
CBD
100%
$1.68
1.0%
100%
$1.51
0.3%
-
-
-
-
-
CP/L
-
-
-
-
-
-
100%
$1.02
0.2%
96.0%
FN
-
-
-
-
-
-
96.7%
$1.20
11.7%
FNW
-
-
-
-
-
-
-
-
-
N
98.2%
$0.99
14.2%
97.5%
$1.09
19.5%
96.4%
$1.09
14.2%
NE
97.5%
$1.06
22.2%
97.5%
$1.02
12.1%
94.4%
$1.04
8.7%
NW
-
-
-
-
-
0.0%
97.0%
$1.09
11.7%
NWH
-
-
-
94.5%
$1.23
21.2%
96.3%
$1.20
RR
-
-
-
91.4%
$0.95
0.9%
98.5%
$1.05
S
98.8%
$1.19
3.3%
96.7%
$1.30
6.0%
96.5%
$1.29
14.7%
SE
93.9%
$1.18
24.7%
95.2%
$1.11
20.6%
95.6%
$1.20
12.6%
SM
96.2%
$1.21
1.5%
94.0%
$0.98
2.0%
94.0%
$1.03
6.3%
SW
-
-
-
95.1%
$1.61
4.6%
94.9%
$1.43
2.8%
WMS
-
-
-
100%
$1.34
0.3%
99.3%
$1.20
1.0%
95.9%
$1.26
98.5%
95.2%
$1.21
96.8%
96.1%
$1.19
79%
95.9%
$1.26
100%
95.2%
$1.20
100%
96.2%
$1.16
100%
Travis
Co.
Austin
MSA
Rent
2010-2Q13
% of
Inv
Occ
Rent
95.8%
$1.01
0.9%
-
-
3.4%
92.8%
$1.88
4.1%
87.9%
$1.78
-
91.9%
$2.39
3.5%
80.9%
$2.70
$1.07
2.4%
96.6%
$1.07
6.1%
-
96.8%
$1.10
19.9%
96.4%
$1.11
15.0%
97.4%
$1.03
3.3%
93.5%
$1.02
8.4%
-
-
0.0%
-
-
92.9%
$1.23
1.2%
93.0%
$1.44
97.4%
$1.17
16.1%
95.6%
$1.11
9.6%
95.6%
$1.29
19.2%
94.9%
5.1%
98.2%
$1.14
7.2%
96.3%
98.0%
$1.20
0.4%
95.4%
95.3%
$1.07
4.0%
95.1%
$1.22
2.3%
94.9%
$1.38
18.4%
97.5%
$0.96
2.2%
96.1%
$1.25
84.2%
96.2%
$1.23
100%
Last 12 months
% of
Inv
Occ
-
Rent
-
-
-
8.5%
35.4%
$1.90
8%
6.9%
50.8%
$2.66
6%
-
-
83.7%
$1.26
12%
94.1%
$1.26
15.2%
82.1%
$1.42
21%
-
-
-
68.6%
$1.27
1%
-
90.1%
$1.43
6.7%
82.1%
$1.68
3%
3.4%
97.3%
$1.14
1.9%
59.0%
$1.89
7%
15.0%
96.3%
$1.18
3.0%
81.5%
$1.25
11%
$1.27
2.4%
94.1%
$1.27
3.6%
-
-
-
$1.06
11.8%
98.2%
$1.06
2.7%
42.7%
$1.35
2%
$1.21
9.5%
95.7%
$1.26
14.1%
65.9%
$1.61
10%
95.0%
$1.16
4.1%
92.2%
$1.76
7.5%
57.8%
$1.75
9%
94.4%
$1.16
2.1%
93.7%
$1.21
14.0%
88.2%
$1.24
7%
95.7%
$1.27
11.7%
96.0%
$1.26
8.8%
56.4%
$1.44
4%
95.2%
$1.09
2.2%
99.1%
$1.23
7.2%
-
-
-
95.0%
$1.29
64.4%
92.4%
$1.50
75.7%
66.7%
$1.64
75.3%
95.3%
$1.22
100%
93.2%
$1.43
100%
69.7%
$1.56
100%
# Properties: 44
# Properties: 105
# Properties: 206
# Properties: 78
# Properties: 162
# Properties: 30
# Properties: 38
# Units: 5,040
# Units: 17,750
# Units: 40,815
# Units: 23,822
# Units: 48,408
# Units: 8,066
# Units: 8,631
Austin Investor Interests, LLC (877) APT-DATA
Page 8
% of
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Copyright ©2014
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www.apartmenttrends.com
877-APT-DATA
Copyright 2007 DeskMap Systems, Inc.
8601 Ranch Road 2222 Building 1 Suite 200
Austin, TX 78730 (512) 346-9330 www.deskmap.com
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