Knightvest Capital Acquires 1,027-Unit Silicon Hills Portfolio in Round Rock Texas

By Multifamily Summit

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 marks the 20th investment in the firm'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 positioned approximately 6 miles west in the Lakeline/Lake Creek submarket.

Knightvest plans to deploy its management platform across all 3 communities and implement a renovation program with planned improvements to exteriors, common area amenities, and a subset of unit interiors. According to the company, renovated unit interiors will feature modern finishes and quartz countertops. As part of the repositioning effort, 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 the Northwest Austin Silicon Hills corridor, with access to employment centers including Dell's world headquarters in Round Rock, which anchors the area surrounding La Frontera. Other nearby employers include Apple's second Austin campus, The Domain, Samsung, Amazon, and Texas Children's Hospital. All 3 communities are zoned to the Round Rock Independent School District.

The company indicated that the acquisition aligns with its strategy of acquiring communities below replacement cost and repositioning them through its in-house operating platform.