Presidium Group LLC continues its penetration in the Riverside Drive corridor with the acquisition of two more student-housing projects — University Estates and University Village, which encompass 67 buildings on 66 acres. That’s some prime real estate in an area that is emerging as one of the city’s hottest markets, given its close access to downtown Austin, the University of Texas and as the primary route to Austin-Bergstrom International Airport. Oracle Corp. is building a huge campus nearby.
The seller was Investcorp International, a New York company that has owned both properties since 2013. The purchase price was not disclosed but records at the Travis Central Appraisal District show the most recent market value as $77.9 million. It’s uncertain whether there are restrictions concerning potential redevelopment of the properties. The Riverside Drive corridor has provided numerous housing options for University of Texas students for the past decade or more. A shuttle is provided for students living in the area where rental rates have been substantially lower compared to West Campus options.
Presidium has been extremely active in Austin during the past five years. The company was formed in Dallas but now has Austin offices as well. The company plans to develop The Edison at 4711 E. Riverside Drive near the intersection with South Pleasant Valley Road. Signs have been up for months, but no construction activity has been apparent. A spokeswoman for Presidium said the company recently obtained construction financing for The Edison and expects to break ground in the first quarter of 2017.
Presidium also is exploring several options for property it owns at 1600 S. Pleasant Valley Road, the spokeswoman said. Presidium also owns a retail center at 2015 E. Riverside Drive. The 66,000-square-foot center has several tenants including Emo’s nightclub. Presidium owns several other apartment properties in the city. In April, the company added to its Texas portfolio by purchasing Balcones Club, 312 units located in Northwest Austin.
HFF handled the sale of the most recent Riverside Drive transaction. University Estates was built in 1997 and University Village was built in 2001. Presidium expects to make upgrades to the properties in the near future.