4003 Red River St
Austin, TX 78751
North 40 Apartments · Multifamily Property For Sale · 36 Units

Highly Desirable Central Location • North 40 is strategically positioned in the path of growth north from downtown Austin as the infill revitalization within the corridor continues. • Located in the highly desirable Hyde Park neighborhood, North 40 benefits from the central location and proximity to the major economic drivers located in and around Downtown (125,000 Jobs) and the University of Texas Campus (50,000 Students), Health and Innovation District (New Med School & $463 Million Hospital). • Positioned just one block west of IH-35, residents are able to enjoy exceptional connectivity to the entire metro along the major thoroughfares: MoPac Expressway, IH-35, Guadalupe Street, and Lamar Blvd. • Ownership has already renewed or preleased 17 units for the 2018/2019 school year with an average premium of approximately $90 per month over current rents. Thriving Submarket Fundamentals • North 40 benefits from being in one of the best performing submarkets in the metro area. The central submarket presents significant high barriers to entry, the urban location and lack of buildable sites severely limit new supply allowing for elevated rents and occupancy further contributing to high sales prices. Over the last 12 months: o Over 240 units absorbed on just 89 new unit deliveries, growing occupancy almost 1% to total 94%. o Rents continue to grow and the average effective rent is $2,081 or $2.26 PSF • Single Family homes in the Hyde Park neighborhood are some of the highest priced in the city fetching well over $300 psf since 2014. o The price per square foot for single family homes has grown by an exponential 58% since 2010, equating to 7.3% year-over-year growth on average. o In 2018 single family homes sold for an average of $366.8 PSF Austin’s Nation Leading Fundamentals • For the second year in a row, Austin is the best place to live in the U.S., according to the U.S. News and World Report • Austin added 30,000 new jobs in 2017 and is projected to add 62,000 more jobs over the next two years (Angelou Economics). • Over the next 5 and 10 year horizons, Oxford Economics projects Austin will have the Nation’s top job and population growth among the county’s top 25 MSAs. • Austin’s business friendly environment and low cost of living attracts the nation’s top talent and millennial demographic which will continue boost rental demand for the foreseeable future. Revenue Enhancement Opportunities • North 40 is currently 97% occupied and in a prime position to increase rents through a comprehensive renovation program. Heightened demand for luxury rental options in the Hyde Park neighborhood allow for a potential investor to complete unit upgrades and drive rents in order for North 40 to compete with top of the market properties. The tile and carpet flooring has been replaced in approximately 12 of the units, fetching rent premiums over the classic units. Additionally ownership has recently installed European Washer Dryers in 17 of the units, realizing monthly rental premiums of approximately $65 over all units without the addition. New ownership can further drive revenue by adding the following potential upgrades: • Wood Plank Flooring Throughout • New Cabinet Faces and Paint • Black/Stainless Steel Appliance Packages • Granite/Quartz Countertops • Updated Fixtures & Hardware • Case Study: 3401 Red River • Just down Red River Street from North 40 – The 3401 Red River Street apartments have begun yielding $1,705 rents on two bed/ 1 bath apartment homes after implementing unit upgrades complete with granite/quartz countertops and new stainless steel appliances. Monthly rents for two bed/1 bath are approximately $350 more at 3401 Red River while the units are essentially the same size as North 40 units. This furthers confidence in North 40 being able to close the monthly rent gap and potentially realize an annual rental income increase of 25% from the additional income gained by growing rents to match those being achieved at the 3401 Red River Street apartments.