Apartment Complex In North Austin Acquired

AUSTIN, TX — The Rastegar Property Co. purchased a multifamily housing complex blocks from the University of Texas at Austin for an undisclosed amount, officials announced.

The 48-unit Hyde Park complex dubbed Plaza 38 will be transformed to provide "upscale living spaces" to young professionals, graduate students and high-earning individuals, officials said in a press release. The site is conveniently located near a hospital, the UT-Austin campus and a number of social hot spots, officials noted.

Located at 206 W. 38th St., Plaza 38 features one- and two-bedroom units with hardwood floors, full kitchens and brick accent walls with access to a centrally located community pool and patio area. Located in close proximity to Interstate 35, one block away from the UT shuttle and less than one mile of the Ascension Seton Medical Center, Plaza 38 offers easy access to downtown, the UT main campus and Austin metro area with a plethora of restaurants, shopping and employment opportunities.

“Hyde Park is considered one of the most desirable places to live in Austin due to the neighborhood’s residential atmosphere, safety, sense of community and convenient location,” Ari Rastegar, CEO of Rastegar Property Co., said in a prepared statement. “This acquisition represents a unique opportunity to renovate a multifamily complex in a highly-desired area that will cater to the city’s growing young professional population and its students, while allowing us to add permanent value to the North Austin/Hyde Park area.”

Added Jim Young, managing director at Newmark Knight Frank: "Located in the heart of Hyde Park, one of Austin’s most desirable neighborhoods, Plaza 38 provides the perfect location for students and young professionals – Austin’s fastest growing demographic,” said “Located less than a mile from the University of Texas, the Dell Medical School and Central Market, along with access to numerous dining and retail options within walking distance, Hyde Park provides the ideal 24-hour lifestyle desired by the majority of tenants and investors."

Company officials ticked off a number of metrics illustrating the need for housing in the fast-growing city — including top-10 job growth from 2013 to 2018 adding more than 177,000 new jobs, for an increase of 18.4 percent. The city also attracted more than 440,000 new residents between 2010 and 2018 — a 25.5 percent rise in population — making it America’s fourth fastest growing city. Officials added that Austin’s expanding job market and influx of residents resulted in the highest rent growth in Texas from 2018 to 2019, as well as the fifth highest in the nation.

The purchase comes on the heels of another acquisition in mid-October for Rastegar, which previously announced it bought a 1.3-acre South Austin property encompassing 56,628 square feet of space. The property at 5402 South Congress Avenue near the West Mockingbird Lane intersection sits in a residential area with nearby retail, restaurants and entertainment venues, officials described at the time. The site also provides access to major thoroughfares, including Interstate 35, US-290 and Stassney Lane, as well as the South Congress and the central business district.

Related story: Rastegar Property Buys South Austin Site For Apartments

Rastegar plans to use the South Austin property to develop a multifamily complex consisting of 76 residential units and 115 underground parking spaces in maximizing rentable square feet. Officials noted the property has potential for more than 110,000 buildable square feet.

And in mid-November, company officials announced they bought a multifamily property near downtown Austin targeted as affordable housing. The 30-unit multifamily property in the Clarksville neighborhood dubbed the Escala Apartments is bordered by bordered by the Mopac Expressway to the west, North Lamar Blvd. to the east, Enfield Road to the north and West 6th Street to the south. Officials noted the Clarksville area offers convenient, walkable access to many of the city’s bars and restaurants, entertainment destinations and outdoor and recreational activities.

Clarksville also is the center of Austin’s cannabidiol (CBD) industry and is close to many workplaces, including Google, Indeed, Parsley Energy and Facebook collectively employing some 4,000 workers. Rastegar Property Company plans to create residential condominium units at that site while renovating and modernizing the building exterior and the interior of each condominium unit, officials detailed. Rastegar Property Company intends to obtain Federal Housing Administration (FHA) and Fannie Mae mortgage underwriting approval for residential loans and price the condominium units in accordance within FHA and Fannie Mae loan limits.

About Rastegar Property Co.

Rastegar Property Company is an Austin-based, vertically-integrated real estate investment firm focused on value-add and development in all asset classes across the United States. Rastegar Property Company and its affiliates have co-invested in over 4.9 million square feet of real estate with projects in 12 states and 34 cities. Rastegar Property Company specializes in acquiring complex or undervalued real estate assets in which there are opportunities to create value through re-positioning, redevelopment, or leveraging its exceptional property and asset management platform to uncover and capitalize on underlying operational inefficiencies. Rastegar Property Company’s unconventional perspective comes from the combined power of disciplined focus and ambition, years of specialized experience and expertise, and outside-the-box thinking.