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Case Study:

Rattan Creek Austin, TX

Acquired
Aug 2008
Sold
Nov 2012
No. of Units
344
Year Built
2000
Status
Realized

Located in the northwest submarket of Austin, Texas, Rattan Creek is an attractive 344-unit, low-density, garden-style community. Built in 2000, the property is situated near primary traffic arteries and major employers in Austin’s high-tech corridor. The seller emphasized selecting a buyer that could close in a short time frame without financing contingencies. IMT negotiated a price below multiple competing bids and at a discount to our estimate of replacement cost, and Fund I acquired Rattan Creek in August 2008.

Prior to the acquisition, the property was operated by a third-party management company, which resulted in occupancy underperformance. Needing a sound business plan and targeted physical improvements, IMT stepped in, focusing on property management strategies and cosmetic renovations to drive leasing demand, maintain high occupancy, execute resident satisfaction, and remain competitive in the Class A market.

Rattan Creek is one of the only assets in the submarket that has units with direct-access garages—a highly desirable feature among affluent renters. The property possesses some of the largest floor plans in the area, and boasts a variety of common-area amenities, including a leasing center, clubhouse, fitness center, business center, billiards room, outdoor living area, dog park, and resort-style pool.

With the completion of IMT’s business strategy, Rattan Creek was brought to market in the third quarter of 2012, and sold in November 2012.