Austin, TX

This Austin asset earns its 88 score on the strength of a 6.8% cap rate in a market where institutional capital is repricing stabilized product closer to 5.5–6.0%. The 96-unit count crosses the institutional ownership threshold, and the 94% occupancy on the trailing 12-month T3 provides confidence in the NOI. DSCR of 1.34x at current agency rates gives the deal meaningful debt service cushion.

The primary risk is the Austin supply pipeline. Roughly 18,000 units are under construction in the MSA, and some submarkets — particularly North Austin along the MoPac corridor — are absorbing new deliveries. This asset sits on N Lamar Blvd, a transitional corridor with strong walk scores but direct exposure to Class-A lease-up competition. Underwriting assumes 93% stabilized occupancy, which is achievable but requires active lease management.

Net: this is a well-priced stabilized multifamily asset in a high-growth Sun Belt market. The score reflects the strong cap rate and coverage, discounted for macro supply risk. A buyer with a 5-year hold horizon and agency financing can model a 14–17% IRR on a moderate value-add renovation of the unit interiors, which are 10+ years behind market finish level.