Colorado Indian tribe buys trend-setting apartment complex in East Austin
The Southern Ute Indian Tribe — headquartered in Ignacio, Colorado, near the Four Corners area — has purchased its second major asset in Austin.
It’s yet another sign of Austin’s increasingly diverse base of landlords buying into a part of Texas that has a glowing reputation around the world.
Through an entity formed by a wholly owned subsidiary of the Southern Ute Indian Tribe Growth Fund, the tribe took possession of 7East, a new apartment community at 2025 E. Seventh St. It was developed and owned by a partnership of Stonelake Capital Partners and Ardent Residential — both very active companies in the Austin market.
The 186-unit, urban-styled apartment complex was completed in 2014. The property was 94 percent occupied at the time of closing.
No purchase price was disclosed. The Travis Central Appraisal District most recently valued the property at about $38.9 million.
Pat Jones — vice chairman of ARA, A Newmark Company — represented the sellers, among the first to build an upscale development on the east side near downtown. Today, that area is crammed with construction crews building a mix of developments from hotels to creative office space and more apartments.
“The area is rapidly gentrifying, but retains an eclectic mix and that’s a beacon for young professionals, tenants and investors,” Jones said.
The Southern Ute tribe also owns Pearl Lantana at 6401 Rialto Blvd. in Southwest Austin. It purchased that apartment property in December 2013, according to public records. Pearl Lantana also is a very new property completed in 2016, and most recently valued for tax purposes at $48,655,124.
The Southern Ute tribe created the Southern Ute Indian Tribe Growth Fund in 2000 to manage and expand investments — at first mostly in the energy sector, primarily natural gas companies.
The tribe dipped its toes into real estate creating the GF Properties Group, which manages an array of assets from hotels to offices to land and master-planned communities.
Most assets are in Colorado, Texas and California, but the tribe also owns a building operated by the General Services Administration on behalf of the Federal Aviation Administration in Kansas City, Missouri. It also owns distribution centers in Illinois, Kentucky and Maryland.
Source: Austin Business Journal
Jan Buchholz, Senior Staff Writer