F&B Capital acquired The Connection (formerly The Heights on Oltorf), a 192 unit/660 by-the-bed apartment community located in the Riverside/Oltorf submarket of Austin, TX. The community primarily caters to students and is located 2 miles from St. Edwards University, 2.4 miles from Austin Community College, and 4.2 miles from the University of Texas. Over 90% of tenant leases are 12 month leases that follow the school year and run from August through July.
The property had not been renovated since its construction in 2000 and had significant deferred maintenance at acquisition. The business plan was to rebrand the property, cure deferred maintenance and capex items, and conduct light interior renovations. At takeover in July 2013 the property was already largely pre-leased through July 2014 so the goal was to position the property to significantly raise rental rates for leases beginning August 2014.