The Grand at Manor - Class A Multifamily - Austin, Texas Submarket

Asset type: Apartment · Location: Manor, Texas

The Grand at Manor – A High-Quality Asset at an Opportunistic Basis Grand at Manor is a 271-unit, three-story garden-style community built in 2021 by CLX Ventures and has been an operational success since its delivery, achieving 96.5% occupancy without offering any concessions. The property boasts top shelf amenities for the submarket, including an expansive pool, a spacious fitness center, pickleball courts, and high-end unit finishes that set it apart from competing properties. Strategic Location & Growth Corridor The Grand at Manor sits at the epicenter of Austin’s ongoing tech expansion, surrounded by major employers such as Apple, Samsung, Tesla, and Applied Materials. This is already evident in the tenant base, as many residents work at these nearby facilities. With convenient access to Highway 290, IH-35, and Highway 130, the property is just 15-20 minutes from downtown Austin and the airport, making it a highly desirable location for renters. Additionally, this area is seeing continued infrastructure and retail development: Las Entradas North, a new 25,000 SF retail center by Endeavor, is being developed directly in front of the property. A new HEB grocery store is slated to open less than a half-mile from the site during our projected hold period, further increasing long-term desirability. Unmatched Discount to Replacement Cost & Sales Comps One of the most compelling aspects of this investment is the massive disconnect between purchase price and replacement cost, which we know will be a key part of your analysis. Acquisition Price: $48MM ($177,500/unit) Current Replacement Cost Estimate: $220,000/unit Discount to Replacement Cost: 27% Additionally, compared to recent transactions, this opportunity presents an incredibly attractive entry point: Citizen House Pflugerville just recently closed at $230K/unit , despite nearly identical rents. The $50K/unit price delta is significant. Alta Blue Goose recently sold for $185K/unit during lease-up, despite being in a less desirable and less walkable location. Newly built surface-parked projects transacted for $200K-$275K/unit between 2020-2022, further demonstrating the below-market basis of our purchase. Investment Structure & Business Plan Our plan is to execute a five-year hold strategy, utilizing a fully approved 100% HFC tax exemption, implementing market-standard fee structures, and leveraging operational efficiencies with nearby owned assets. Key Financial Highlights: Cap Rate: 5.3% Trailing, 7.5% Year 1 (with HFC Exemption) Gross Levered IRR: 23.86% 5-Year Cash on Cash: 9.45% 5-Year Exit Price: $263K/unit @ 6.0% exit cap Equity Ask: $3MM