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.