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 approximately 6 miles west in the Lakeline/Lake Creek submarket.

The company will deploy its management platform across all 3 communities and implement a renovation program. Planned improvements include exterior updates, common area amenities, and unit interior renovations. Renovated units will feature modern finishes and quartz countertops. As part of the repositioning, the company will rename the properties. Enclave at La Frontera will become Brixton, Lakeside at La Frontera will become Calder, and Legends Lake Creek will become 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. Nearby employment centers include Dell's world headquarters in Round Rock, Apple's second Austin campus, The Domain, Samsung, Amazon, Texas Children's Hospital, and technology, life sciences, and healthcare employers. All 3 communities are zoned to Round Rock Independent School District.

According to the release, Austin has experienced challenges from oversupply and higher interest rates, prompting some owners and lenders to sell at discounts. The company stated this market condition created the acquisition opportunity, consistent with its strategy of acquiring properties below replacement cost for repositioning.