BSR REIT acquires Austin suburban apartment complex for $93.8 million

by Talk Business & Politics staff ([email protected]) 764 views 

Little Rock-based BSR Real Estate Investment Trust acquired Aura 36Hundred Apartments, a new garden-style residential community with 356 apartment units in the Round Rock sub-market of Austin, Texas for $93.8 million.

The transaction was funded through $51 million in mortgage debt, a draw-down of $41 million from the REIT’s credit facility and $2 million of cash on hand. The property is expected to be accretive to the REIT’s Adjusted Funds From Operations per unit in the first 90 days of ownership.

Aura 36Hundred is part of Avery Centre, a new 1,200-acre mixed use planned community adjacent to higher education and medical care hubs including Texas State and Texas A&M Health and Science Center Round Rock.

The property is newly constructed and fully opened in September 2021 with more than 90% of apartment units leased. Aura 36Hundred has numerous amenities including a cutting-edge fitness center, resort-style pool with sun deck, direct access garages, a 24/7 package locker system, walk-in closets, a pet wash station, and a dog walk.

Following this acquisition, the REIT owns 1,848 apartment units in the Austin/Round Rock MSA, representing 22% of its total portfolio.

“Aura 36Hundred complements BSR’s more modernized portfolio as we deploy capital and enhance our scale in Austin, one of the most robust apartment markets in the U.S.,” said John Bailey, BSR’s CEO. “As we continue to leverage our established management platform and benefit from the strong sunbelt market fundamentals, we expect further outsized increases to our key performance indicators.”