Knightvest Capital Acquires 1,027-Unit Silicon Hills Portfolio in Round Rock for Fund II
Knightvest Capital announced the acquisition of the Silicon Hills portfolio, comprising 3 communities totaling 1,027 units in Round Rock, Texas within the Austin MSA. The transaction represents the 20th investment in Knightvest’s Fund II.
The portfolio includes Enclave at La Frontera, a 411-unit community built in 2004, Lakeside at La Frontera, a 366-unit community built in 2001, and Legends Lake Creek, a 250-unit community built in 2001. Enclave and Lakeside are located adjacent to one another within the La Frontera master-planned mixed-use development in Round Rock. Legends Lake Creek is located approximately 6 miles west in the Lakeline/Lake Creek submarket.
According to the release, the acquisition provides Knightvest the opportunity to add established communities and newer vintage assets at a reset basis in one of Austin’s submarkets, where the firm plans to apply its operating and renovation expertise to reposition the portfolio.
Knightvest will deploy its management platform across all 3 communities and implement a renovation program with planned improvements to the exterior, common area amenities, and a subset of unit interiors. Renovated units will feature modern finishes and quartz countertops aimed at positioning the properties more competitively with newer construction in each area. The company will rename Enclave at La Frontera to Brixton, Lakeside at La Frontera to Calder, and Legends Lake Creek to Sutton.
“The Silicon Hills portfolio is a compelling opportunity to acquire three well-located multifamily communities in one of Austin’s most desirable submarkets at a significant discount to both recent trades and replacement cost,” said David Moore, Founder and CEO of Knightvest. “Fund II was purpose-built to identify assets like these, properties we can renovate to a like-new standard while maintaining a substantially lower basis than nearly all comparable vintage communities and roughly half the cost of new construction.”
The portfolio is located in Northwest Austin’s Silicon Hills corridor, with access to major employment centers including Dell’s world headquarters in Round Rock, which anchors the area surrounding La Frontera. Apple’s second Austin campus, The Domain, Samsung, Amazon, Texas Children’s Hospital, and other technology, life sciences, and healthcare employers are located within minutes of the properties. All 3 communities are zoned to the Round Rock Independent School District.