The River Park Apartments (the “Property” or “River Park”) River Park is a 100-unit, garden-style multifamily community built in 1973, situated on 4.628 acres of land, comprising of 60 one-bedroom-one-bath 750-square foot units and 40 two-bedroom-one-bath 925 square foot units. The Property offers assigned covered parking, a swimming pool and on-site laundry facility.  In  addition,  residents of River Park have  direct river access via an easement through the adjoining property. River Park’s location along Interstate 35 provides residents with convenient access to major employers, healthcare, shopping centers, and recreational opportunities in the area.

We view the I-35 corridor that links Austin and San Antonio to one day rival the growth of Dallas/Fort Worth.  As such, we have made bets in some of the bedroom communities adjacent to the I-35 representing some of the fastest growing zip codes in the U.S. over the past several years.  This growth has been supported by major employers expanding their respective footprints in the area, including  Amazon, Toyota, Caterpillar, Wall-Mart Regional Distribution Center, Coleman Company and Vanguard Health Systems.

Our team has performed various physical improvements since our acquisition, including a strategic and phased rolling renovation of interior units.  The Property vastly outperformed our pro forma during the initial stages of our ownership producing double-digit cash-on-cash returns. However, with outsized growth also comes attendant problems including crime that affected the area, the Property as well as many other competing properties in the submarket.  During our team’s efforts to ameliorate problem tenancies, our returns faltered, but both revenue and occupancy are again trending positively.  We continue to view the long-term growth prospects and underlying economic fundamentals of the area favorably.