- Cliff House is a two story 18-unit boutique ‘Melrose Place’ style apartment complex located in the heart of the bustling Travis Heights/South of Congress submarket of Austin, TX. It’s located at 513 Pecan Grove Road just steps away from Austin’s vibrant stretch of hip boutiques, trendy lodging options, Austin-original eateries, live music shows and other nightlife. Travis Heights is one of Austin’s most mature, infill neighborhoods that borders Downtown and South Congress Avenue. Cliff House is one of the last, true multifamily properties in the neighborhood that has not been converted to condominiums. With scarce rental supply and historically high occupancy rates in the area, Cliff House presented the opportunity to own rental product in one of Austin’s most desirable neighborhoods.
- Cliff House had been well-maintained by prior ownership for over 30 years and provided the opportunity to significantly renovate and capture large rental increases demonstrated in the few other multifamily properties in the neighborhood. Residents also enjoy the natural amenities provided by the property’s placement atop a cliff with views from the back courtyard overlooking the Blunn Creek Greenbelt.
- The asset was purchased in the last quarter of 2020 for roughly $3.2M. With a CapEx budget of $800K (nearly $45K per door) – extensive upgrades shall be realized to truly market and realize this assets full potential. Austin is one of the hottest markets in the United States and shows no signs of slowing down.
Although this asset was purchased as a long term hold, initial projections conservatively show a 1.8x multiple within 5 years.