Austin Texas Apartment Update
Texas A & M Real Estate Center
AUSTIN (Marcus & Millichap) – Austin's apartment market appears to be on the road to recovery, but it will take time before supply and demand return to a healthy balance, according to Marcus & Millichap Real Estate Investment Brokerage Company’s latest apartment research report. Market factors currently have the scales tipped in the favor of renters.
“The trend toward homeownership is likely to slow in the coming year as mortgage rates rise," comments Michael Hoffman, VP and regional mgr of the firm's Austin office. "This, together with increased migration trends and an improving economy, will benefit the apartment owners and investors by strengthening tenant demand for housing."
The report found that employment is expanding in 2004, & job growth should reach 15,500 by the end of the year. About 2,500 units will be completed in 2004, down from the 4,000+ units that came on the market in 2003. Most of the construction is taking place in the Highway 183 (Research Blvd)–Cedar Park and Ranch 620 North–FM 2222 submarkets.
Apt vacancy is expected to show a 50 basis point drop for 2004. Vacancy is forecast to end the year at 11 percent, down from 11.5 percent for 2003. In the Round Rock–Georgetown submarket vacancy has declined 180 basis points since 2003, to 14.8 percent. The City Central submarket is among the tightest in the metro with vacancy expected to end 2004 at 8 percent.
Following two years of decline, the average asking rent is expected to remain flat at $765 per month. The median sales price has increased 3 percent since last year to about $42,200 per unit.
AMLI RESIDENTIAL PROPERTIES SOLD
Austin apartment owner is sold
Arm of Morgan Stanley will pay $2.1 billion for AMLI. AMLI Residential Properties Trust, which owns 6 Austin-area apartment complexes and is building a 7th, has been sold.
Morgan Stanley's real estate division, Prime Property Fund, will pay $2.1 billion in cash and assumed debt to acquire AMLI.
AMLI's Austin properties include AMLI Downtown, a 220-unit apartment complex on West 2nd Street. With a growing number of ground floor shops, it's an anchor of the emerging 2ndStreet retail district.
Prime Property said it was impressed by the quality of AMLI's mgt and planned no changes. It said it might put some of its other holdings under AMLI management.
The company has said it plans to start work soon on a companion building two blocks west.
AMLI, Chicago based, owns 75 upscale apartment complexes across the U, S.
Gables Chief Operating Officer to resign
Gables Residential Trust, which operates several apartment properties in Austin, TX is losing its COO.
COO Mike Hefley has decided to step down from his position to spend more time with his family. He will resign from Gables in 2005 and will assist the successor with the transition. Gables claims it already has begun a search for Hefley's replacement.
In Austin, the company operates Gables at Great Hills, Gables at Bluffstone, Gables Grandview, Gables Central Park, Gables Park Mesa, Gables Town Lake, Gables West Avenue, Gables Barton Creek and the Gables at the Terrace.
Austin Tx apartment update: Austin apartment occupancy rate, rents, Dell Computers, Gables, University of Texas, Austin rental trends, rental housing, jobs
