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Villages of Bella Vista

Bella Vista Entrance

Overview

The Villages of Bella Vista is a 402-unit, institutional-grade luxury apartment community developed by The GenCap Group on 50.6 acres in southwest Austin, Texas. Construction started in 2004 and the property opened in May 2005. The project is located eight miles from downtown Austin. The community includes a comprehensive amenity package with a clubhouse and leasing office, fitness center, internet café and coffee bar, resort-style pool, covered and garage parking.

Opportunity

• Population growth: Austin, Texas has routinely led the nation both in job and population growth

• High barriers-to-entry: The City of Austin imposes strict development restrictions as this submarket is located on top of a environmentally sensitive aquifer recharge zone

• Higher density: Site had grandfathered higher density zoning with a favorable land acquisition price per unit

• A large parcel with one of the highest points in south Austin offering great views of the surrounding Hill Country

• This growing southwest Austin submarket, averaging 93%+ occupancy rates, has a lack of new Class A multifamily development

• Tract located along major road and close to major highways, employers, and retail

Strategy

• Acquire land, construct project, achieve stabilized operations, and subsequently sell project

• Target upscale apartment market by offering resort like amenities, townhomes, larger floor plans, garages and other amenities

Execution

• Acquired raw land with grandfathered high density at favorable price
• Obtained necessary entitlements
• Designed and constructed the project
• Supervised property operations from opening to stabilized operations
• Achieved highest rental rates in the submarket
• Sold asset at 4.5% cap rate

Characteristics

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Opportunistic
Villages of Bella Vista
Austin, Texas
Southwest Austin
Class A Garden-style Multifamily
402 units (399,588 square feet)
50.6 acres
2003
2008
5 years
17.1%

Bella Vista Sign

The Villages of Bella Vista is a 402-unit, institutional-grade luxury apartment community on 50.6 acres in southwest Austin, Texas.