Newmark Knight Frank (NKF) announces the sale of Hawthorne at the District, a 284-unit 80’s vintage multifamily community. The asset is located in Austin, Texas near the East Riverside corridor, a district that is rapidly transforming into a true live-work-play destination, anchored by the expanding Oracle Cloud campus. The property was 97.5 percent occupied at the time of sale.
Vice Chairman Patton Jones represented the sellers, Hawthorne Residential Partners, a North Carolina-based multifamily investment management group, and Midway, a New York-based multifamily investment firm active in the Southeast and Texas value-add markets. The asset traded to Wildhorn Capital, an Austin-based multifamily investment firm focused on value-add assets in Texas markets, for an undisclosed price. Additionally, Patrick Short, Managing Director for NKF’s Debt & Structured Finance group, facilitated the financing of the transaction for Wildhorn Capital. This is Wildhorn Capital’s seventh transaction and financing with NKF and its third acquisition in the Austin market, bringing its total Texas multifamily portfolio to 1,854 units.
According to Jones, “Hawthorne at the District represents a growing trend of value-add trades in the East Riverside corridor as this area rapidly develops, spurred by the presence of Oracle’s expanding campus. Investors are looking to capitalize on residents seeking affordable, quality living options just outside of downtown Austin.”
The Wildhorn Capital principals, Andrew Campbell and Reed Goossens, plan to continue their value-add model with the acquisition of Hawthorne at the District. Wildhorn Capital’s process includes implementing all value-creating strategies within the first 12 months of ownership and completing all rehabilitation work within the first 18 months, aiming to garner the highest returns for their investors.
“NKF cleared the market for debt options that would complement their plan, ultimately selecting Mesa West Capital. Lenders remain focused and eager to deploy capital in the Austin market,” said Short.
Completed in 1987, Hawthorne at the District is uniquely positioned within the heart of the East Riverside district. The asset will be across the street from the planned 4700 East Riverside project, a 97-acre mixed-use development with plans to include four million square feet of office space, as well as parkland, hospitality and medical space. Oracle’s current 560,000-square-foot campus is less than one mile from Hawthorne at the District. The company has already started construction on its 420,000-square-foot phase II expansion, creating space for up to 10,000 employees at full build out.
“The proximity to Oracle, downtown Austin and east Austin positions Hawthorne at the District to attract a talented, high-earning resident base for years to come,” concluded Jones.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,000 professionals operate from approximately 480 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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