CapitaLand has formed a joint venture with an unnamed partner to grow its multifamily footprint in the US by acquiring and developing $300 million in apartment assets in the southeast and southwest US markets. The partner is an Austin-headquartered real estate investment, development and property management firm and the JV’s initial focus will be on that city.
CapitaLand and its partner have acquired a freehold land parcel in Austin to develop the joint venture’s first multifamily project. CapitaLand holds an 80% stake in the project while its partner holds the remaining 20%. The 4.71-acre land parcel will be developed into a mid-rise and green 341-unit suburban property, which will deliver in 2023. CapitaLand’s partner has developed over 25,000 multifamily units in the US since its launch 25 years ago.
CapitaLand already owns 16 US suburban multifamily properties which it acquired in 2018. Since the acquisition, the Singapore-based investor has refurbished the apartments to enhance returns, according to Dang Phan, managing director for USA, CapitaLand. Its multifamily properties have a current occupancy rate of about 95%. CapitaLand first entered the US in 2015. Its multifamily properties are located in the suburban communities of Seattle, Portland, Greater Los Angeles and Denver.
The property in Austin is a five-minute drive from The Domain, commonly referred to as “Austin’s second downtown”. It is also next to the McKalla Place Major League Soccer Stadium, which is slated to open in Spring 2021.