Knightvest Capital Buys 1,027-Unit Austin Portfolio at Deep Discount Amid Market Reset

Dallas-based Knightvest Capital has acquired a 1,027-unit apartment portfolio in the Austin metropolitan area, according to a company press release covered by Multifamily Dive and RealtyWire. The transaction marks the 20th investment for the firm’s Fund II and signals that some investors see Austin’s oversupply cycle nearing its end.

Knightvest Acquires 1,027 Units Across Round Rock and Austin

The portfolio consists of three garden-style apartment communities located in Round Rock and Northwest Austin. Knightvest purchased the properties at a significant discount compared to their early 2020s valuation peak, according to firm founder and CEO David Moore.

The acquired properties include the 411-unit Enclave at La Frontera built in 2004, the 366-unit Lakeside at La Frontera built in 2001, and the 250-unit Legends Lake Creek built in 2001. Enclave and Lakeside are situated adjacent to each other inside the La Frontera master-planned mixed-use development in Round Rock. Legends Lake Creek sits approximately six miles west in the Lakeline/Lake Creek submarket.

Knightvest plans to rename the assets following the acquisition. Enclave will become Brixton, Lakeside will be renamed Calder, and Legends Lake Creek will take the name Sutton, per company disclosures.

Renovation Strategy Targets Silicon Hills Employment Corridor

The properties sit within the Northwest Austin Silicon Hills corridor, providing immediate access to major area employers such as Dell’s world headquarters in Round Rock, Apple’s second Austin campus, Samsung, Amazon, and Texas Children’s Hospital. Beyond job access, David Moore noted that the local school system was a primary draw for the investment.

Round Rock serves as the home for Dell and offers an abundance of employment opportunities, but the decisive factor is the presence of an educational network featuring A-rated schools.

David Moore, Knightvest Capital

Knightvest operates as a vertically integrated firm, handling acquisitions, renovations, and property management in-house. The company intends to execute a comprehensive capital improvement plan across the portfolio. Renovations will target exterior paint, upgraded common-area amenities, and select interior updates including new flooring, fixtures, and quartz countertops.

Our objective is to upgrade 20% to 25% of the apartments to a pristine state that closely emulates brand-new builds.

Resetting Basis in an Overbuilt Texas Multifamily Market

The transaction illustrates how value-add investors are approaching Sun Belt markets following years of heavy construction. Recent years brought an influx of new apartment units to rapidly expanding Texas cities, which elevated vacancy rates, put downward pressure on rents, and compelled certain past owners to divest at valuations significantly below their purchase prices or current replacement costs.

According to David Moore, the portfolio was last acquired at peak pricing in the early 2020s, allowing Knightvest to step in at a heavily reset basis.

Austin is out of favor. Everyone understands the supply story. Every developer started building and the basis really has been reset. I don’t know if it’s all the way to half, but it’s, it’s a big discount to what it traded for previously.

David Moore, Knightvest Capital

Unlike properties from the 1970s and 1980s in bad locations currently surfacing across Texas, Moore emphasized that these early-2000s assets occupy good locations and require less structural remediation to compete with modern construction. The deal closes as broader multifamily data indicates stabilization in several Sun Belt markets, though the ultimate success of the investment strategy relies on how quickly local submarkets absorb remaining inventory.