The Camden-based Michaels Organization recently completed the sale of Zoey Apartments, a newly built apartment community in the rapidly growing market of Austin, Texas, for $59.2 million to Sterling Equities, a New York-based real estate.
“Michael’s ability to develop first-class properties, particularly in markets where housing demand so quickly outstrips supply, allows us to offer attractive returns to our investors and financial partners while supporting our future growth. “, Michael Flannagan, executive vice president of development at the Michaels Organization, said.
The Zoey development began to be leased in early August, and at the time of sale it was 82% occupied. The community offers 306 luxury units, 38 of which are designated as affordable.
Located in a highly desirable East Riverside neighborhood, Zoey is less than 5 miles from downtown Austin and close to public transportation as well as major highways. The Southeast Riverside Market is also host to several cultural attractions and recreational activities. Major employers in the region are Meta, Oracle, Google, Tesla and Whole Foods Market.
“Texas is one of many key markets where Michaels is developing new multi-family communities,” said Chris Brookshire, vice president of Michaels and lead developer of Zoey. “This community was designed with the needs of residents in mind, and it’s an asset to the Riverside neighborhood.”
Zoey offers residents well-planned units along with durable, upgraded features including plank floors, quartz countertops and spacious closets, in layouts ranging from bachelors to two bedrooms. Amenities include fitness areas, a rooftop lounge, co-working spaces, and leisure lounges as well as a swimming pool, courtyards, bike storage, and dog wash area. The community also offers ample on-site parking.
Kelly Witherspoon and Michael Gonzalez of Berkadia’s Austin office represented the Michaels organization in the decision.
“The Zoey is an extremely well built Type 1 built midrise that has been very well received in the market by both private and institutional investors,” said Witherspoon. “Filling opportunities of this caliber have been rare in Austin in recent years, so when they surface they usually get a lot of attention, which was the case here. Michaels was amazing to work with, and we’re looking forward to the next set.
Terms of the transaction were not disclosed.