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12/17/21
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DB Capital Management has purchased its third property in Texas in the last two months with its acquisition of Lantana Trace, a 112-unit multifamily community in Austin. The price was not disclosed.
Since entering Texas in 2018, DB Capital has grown its local portfolio to approximately 1,500 units with assets in Austin and San Antonio.
Lantana Trace is a vintage garden-style community with 112 one- and two-bedroom apartment homes spread out across 10, two-story residential buildings. DB Capital will begin a $3.2 mil capital improvement program, spending approximately $30k per unit on upgrades that will include adding stone counter tops, designer flooring, stainless steel appliances, tile backsplashes, and upgraded plumbing, lighting, and hardware. The enhancements will allow the property to compete with similar renovated vintage properties in the area.
The property, which was 87% occupied at close, will be combined with a neighboring project, Ascent at Walnut Creek, which the firm acquired in January 2021. DB Capital will reposition the properties as a single community allowing for the sharing of amenities while creating economies of scale.
With approximately 184 new residents per day entering the market each day, Austin is seeing a lot of new construction, but those apartment homes are often too costly for many of the city’s growing population, according to DB Capital CEO Brennen Degner.
“Much of the new construction is geared to what we refer to as ‘renters by choice” those white-collar workers who typically make more than $100k per year,” said Degner. “This has priced out the majority of renters in the market. Our focus has been on buying older properties, where we can make improvements and still keep rents in line for those renters by necessity.
The acquisition of Lantana Trace caps off an active fourth quarter for DB Capital that saw the firm post $195 mil in transaction activity, including $115 mil in acquisitions in Texas and Utah and $80 mil in dispositions in Los Angeles and Portland.
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