Bow River Capital has acquired the Veranda Apartments in Austin, as part of its strategy to build a multifamily portfolio across what it calls the “Rodeo Region.” The Denver-based investment firm purchased the 362-unit property at 7205 East Ben White Boulevard with partner Missio Capital. The deal was facilitated by Newmark, which secured financing for Bow River and represented the seller, Wayfinder Real Estate.
While financial terms were not disclosed, local appraisal district records value the property at $45.8 million. Veranda Apartments was completed last year and is located about seven miles southeast of downtown Austin, near both the Austin-Bergstrom International Airport and the Tesla factory.
Bow River Capital has trademarked the term “Rodeo Region” to describe its target area for investments, which includes Texas, Oklahoma, New Mexico, Arizona, Kansas, Colorado, Utah, Nevada, Nebraska, Wyoming, Idaho, Montana and the Dakotas.
The company recently expanded its holdings with acquisitions in Kansas City and Houston. In Houston’s Midtown neighborhood, Bow River bought a 337-unit property from Camden Property Trust and rebranded it as Hadley Midtown Apartments.
Investors such as Bow River Capital are increasing their activity in Austin’s multifamily market despite recent challenges. A surge in apartment supply has led to declining rents and occupancy rates. According to ApartmentData.com, rents in Austin dropped 7.5 percent over the past year while occupancy fell to 85 percent.
However, some analysts see positive signs for renters in Austin. JLL’s Kai Pan noted that rent declines have made Austin the most affordable major rental market in the country. On average, renters now spend just 16.8 percent of their income on rent due to lower prices combined with relatively high salaries.
Looking ahead, Pan pointed out that Austin’s population grew by 30 percent over the past decade while job growth reached 48 percent—both figures surpassing those of other Sun Belt cities.
