222-unit Legends Lakeline is investor’s fourth off-market apartment acquisition in metro area in past 1.5 years totaling $247 million

AUSTIN, Texas – (October 28, 2021) LYND LIVING, a Texas-based multifamily investor, developer and operator, has acquired its fourth property in Austin, Texas in the past 20 months. On October 28, LYND, in partnership with an institutional buyer, closed on the 222-unit Legends Lakeline, a Class A garden-style apartment community in North Austin for $46.6 million in an off-market transaction.    

“The Austin-metro area is one of strongest rental markets in the nation due to strong in-migration from high-tax, high-density states,” said A. David Lynd, LYND LIVING CEO. “Legends Lakeline is a perfect fit for our strategy of buying properties in well-located, high-growth areas that we can bring up to date and provide a nicer living experience for our residents.” 

Built in 2009, Legends Lakeline features one-, two-, and three-bedroom floorplans with unit sizes ranging from 675 square feet to 1,717 square feet.  The gated community boasts several amenities including a resort-style pool, fully equipped fitness center, grilling stations, resident clubhouse and game room, dog run and business center.  

LYND LIVING will invest nearly $4 million in value-add rehab work and rebrand the property. All the units will be brought up to date, the building exteriors will get a fresh coat of paint, and renovations and additions will be made to many of the common areas. 

Legends Lakeline is located at 9725 N. Lake Creek Parkway near several popular dining, shopping and recreational venues, and close to major employers and health care providers.  The area provides a better value for renters compared to other parts of the metro area.   

“While rents have gradually been pushing upwards in North Austin, people seeking to live in quality apartments know the area still offers a much better deal than living in the city center,” said Constantine Scurtis, president of LYND Acquisition Group.  “That is why we are bullish on this submarket.” 

Since the start of the pandemic in 2020, LYND LIVING has acquired nine multifamily assets in Texas and Florida valued at $447 million. The company paid $247 million for four properties totaling 1,249 units in Austin—all involving off-market transactions. The most recent was the 250-unit Legends Lake Creek acquired in July. 

“As housing prices continue to climb in Texas and throughout the U.S. due to a supply issue, we think it will only strengthen the multifamily rental market,” Lynd said.  “We do not see a slowdown any time soon."

First project for experienced apartment developers planned near Houston

San Antonio/Houston, TEXAS--LYND LIVING and T.R. Inscore, LLC, both accomplished developers and operators of multifamily properties nationwide, have formed a joint venture to develop single-family build-to-rent communities in Sun Belt states and suburban Chicago.  Their first project is planned for Waller, Texas located just northwest of Houston.   

 The partners analyzed the single-family build-to-rent space over the past two years, and in doing so, learned why it had become so popular.

 “Essentially, we found out of all the people who rent, 70% lease homes and 45% cannot afford to buy a home,” said A. David Lynd, CEO of LYND LIVING.  “What we are going to be doing helps meet the demand for people who want homes but cannot afford them. Also, the move ‘professionalizes’ what had been a ‘mom-and-pop’ approach of renting houses.  Now, these renters will get institutional ownership and professional management/maintenance for a much better experience.”

 In Waller, the companies will develop a $35 million gated rental community, called the Village at Waller. They recently closed on a construction loan for the first phase which consists of 118 single-family homes on 14.7 acres. There are plans to eventually build up to 700 units on an additional 52 acres, depending upon demand.  

 The Village at Waller will feature a mix of 2-and-3-bedroom homes ranging in size from 1,090 square feet to 1,657 square feet, all designed with a sleek, modern look.  Each home will have two covered-parking spaces, fenced backyard, a complete appliance package and an electronic keyless entry. Community amenities include a resort-style pool with an adjacent cabana that has a covered patio, two-sided fireplace and flat screen TVs; outdoor kitchen with BBQ grills; a Precor fitness facility open 24/7; dog park and playground.

 Lease rates will range from $1,600 per month to $2,250 per month.  

 Waller is located near a sprawling 4.2-million-square-foot manufacturing and distribution campus for Daikin HVAC which employs 6,500 people. “With an employment base like that, we think there is a tremendous opportunity to do very well with our first project out of the gate,” said Ron Inscore, president of T.R. Inscore, LLC which has built and sold an apartment project, Ranch at Waller, in the area previously. “People who have been used to renting apartments can now enjoy the benefits of a single-family home with a large backyard along with significant community amenities.” 

 San Antonio-based LYND LIVING has been developing, buying and managing apartment communities for over the past 41 years, operating in 29 states and 60 metro areas. It has developed or acquired more than 28,000 units valued at nearly $4 billion. Chappel Hill, Texas-based T.R. Inscore, LLC has more than 25 years’ experience in development and construction management and has built over 8,700 units valued at nearly $1 billion.

 Both groups have partnered on multifamily deals for the past 15 years. Most notably, they developed The Ranch at Arrington, a 272-unit garden-style community in College Station, Texas, and EnV, a 29-story luxury apartment tower in Chicago that won the prestigious High-Rise of the Year by Multifamily Executive and set a record price upon sale. 

 For this single-family rental program, the partners plan on sourcing sites and developing communities together, and utilizing the best-in-class technology to manage them. With a half dozen new sites in the pipeline, LYND LIVIING and T.R. Inscore also plan to create a brand as they expand nationally.

 “In the multifamily world, we have a track record of building quality rental product and providing exceptional living experiences for our residents,” said Lynd.  “We are well positioned to replicate that winning formula in the single-family-home-for-rent model and look forward to taking this next chapter in our company’s growth.”

 Lynd and Inscore hope to capture the evolving preferences of a maturing millennial demographic and the work-from-home trend necessitated by the pandemic.

 “These young working professionals who have lived in densely populated urban areas want something different now,” Inscore said. “They want a new single-family home in a well-amenitized suburban community, where they can start a family or just enjoy more living space, and more workspace if needed.  

“Even though they are now gravitating towards a home in the suburbs, many millennials still don’t like to be tied down, so renting gives them options and flexibility,” Lynd said.  “As a result, we think this build-to-rent single-family home trend is here to stay and we are still ahead of the curve in bringing new product to market.”

 Construction is expected to begin immediately, with the first homes to be delivered in the early first quarter of 2022.

Greystone, a leading national commercial real estate finance company, has provided a $41.2 million bridge loan for the acquisition of a multifamily property in Austin, TX. The transaction was originated by Steven Vainer, Director at Greystone on behalf of Lynd Living.

The property is secured by a Greystone bridge loan that includes a 36-month term with two 1-year extension options, with the intention for permanent take-out financing with Greystone. 

Constructed in 2001, Legends at Lake Creek is a 250-unit value-add apartment complex in the highly affluent Anderson Mill submarket of Austin with a plethora of shopping, employment, and recreational opportunities nearby. Austin is a fast-growing market, ranked as the #1 “Hottest US Job Market” by The Wall Street Journal in 2020 and #1 “Best State Capital to Live In” by WalletHub in 2021, with Apple’s $1 billion campus under construction less than 3 miles from the property, anticipated to bring 15,000 jobs to the area.

“As soon as this asset was under contract, it was clear that the permanent debt solution was going to be an issue with closing on time. Greystone gave us their word they could deliver with an immediate, interim financing-to-permanent capital solution, and they succeeded,” said A. David Lynd, President & CEO, Lynd Living.

“Greystone’s bridge lending platform offers a variety of permanent exit solutions that are tailored to our clients’ needs. I’m thrilled we were able to assist Lynd Living with this recent acquisition, and for the long-term outcome as well,” said Mr. Vainer.