14.6-acre infill parcel with frontage on a major arterial. Entitlements support mixed-use; highest-and-best leans toward multifamily + pad sites.
14.6 acres, 620' of frontage, all utilities to site. Existing zoning permits up to 24 du/ac with administrative site-plan approval.
Building systems, envelope, and site improvements were evaluated against age-appropriate benchmarks. Overall condition is consistent with the asset's vintage and prior capital plan; near-term capex is limited to cosmetic refresh and tenant-driven improvements.
Submarket absorbing ~310 multifamily units / year with limited new deliveries. Retail pad demand strong for QSR and convenience.
Three-method valuation triangulating Income, Sales Comparison, and Cost approaches. Concluded value reflects current market conditions and the asset's position within North Austin MSA Infill.
| Cap rate ↓ / NOI → | -5% | Base | +5% |
|---|---|---|---|
| 5.75% | $15.2M | $16.0M | $16.8M |
| 6.25% | $14.0M | $14.9M | $15.4M |
| 6.75% | $12.9M | $13.6M | $14.3M |
Projected stabilized cash flows assume 3% annual rent growth, 2% expense growth, and a 7% vacancy reserve. Returns are illustrative and pre-debt.
| Line item | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 |
|---|---|---|---|---|---|
| Gross Potential Income | $1,420k | $1,463k | $1,507k | $1,552k | $1,599k |
| Vacancy & Collection | ($99k) | ($102k) | ($105k) | ($109k) | ($112k) |
| Effective Gross Income | $1,321k | $1,361k | $1,402k | $1,443k | $1,487k |
| Operating Expenses | ($388k) | ($396k) | ($404k) | ($412k) | ($420k) |
| Net Operating Income | $933k | $965k | $998k | $1,031k | $1,067k |
| Capex Reserve | ($28k) | ($29k) | ($30k) | ($31k) | ($32k) |
| Cash Flow Before Debt | $905k | $936k | $968k | $1,000k | $1,035k |
Five infill land transactions within 8 miles. Per-acre pricing varies widely with entitlements; entitled sites trade at a 35–55% premium.
| # | Property | Distance | $/SF | Cap rate |
|---|---|---|---|---|
| 1 | Westline Tract | 2.2 mi | $215k/ac | — |
| 2 | Highline 18 | 3.0 mi | $305k/ac | — |
| 3 | Stone Creek Site | 4.5 mi | $198k/ac | — |
| 4 | Arborwood Pad | 5.1 mi | $320k/ac | — |
| 5 | Maple Junction | 6.0 mi | $208k/ac | — |
Comp set drawn from arm's-length transactions in the trailing 18 months; outliers (REIT portfolio trades, intra-family transfers) excluded. Adjustments applied for age, condition, lease structure, and location.
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| Tenant rollover | Med | High | Pre-leasing & early renewal |
| Cap rate expansion | Med | Med | Lock fixed-rate debt |
| OpEx inflation | High | Low | NNN passthrough where possible |
| Insurance market | High | Med | Bundle & higher deductible |
Pursue administrative site-plan approval for 280 units + 2 pads, then market entitled parcel to merchant developers.
Property Sage AI provides informational estimates, market observations, and commercial property insights for educational purposes only. Reports are not appraisals, broker opinions of value, legal advice, financial advice, or guarantees of future performance. Users should independently verify information before making real estate decisions.
