An undisclosed buyer has snapped up an apartment complex in the heart of Kyle, the second-fastest growing city of at least 50,000 people in the country based on the latest U.S. Census data.
Dallas-based SPI Advisory LLC sold the 254-unit Oaks on Marketplace complex on May 22, the company announced. An SPI representative declined to disclose the buyer or sales price.
Oaks on Marketplace is a roughly 216,000-square-foot apartment complex with one-, two- and three-bedroom floor plans. The property, completed in 2017 and purchased by SPI in 2019, is located on about 14 acres at 20400 Marketplace Ave.
The property is appraised at $44 million by the Hays Central Appraisal District, although market value often exceeds appraised value. For instance, the city of Austin plans to purchase Tokyo Electron’s Southeast Austin campus for $87 million, when that property was appraised at $53.3 million in 2024.
“Oaks on Marketplace has been a great performing asset for us the last five years,” stated Michael Becker, principal at SPI Advisory. “While we still are very bullish on the I-35 corridor between Austin and San Antonio and own numerous other properties nearby, we felt it was the right time to go full cycle and return capital to our investors so that we can redeploy into better opportunities.”
Last May, SPI purchased the 264-unit The Bradford apartment complex in Buda. According to its online profile, the firm also owns several apartment complexes in Austin, Buda, Kyle and Hutto.
SPI said it remains confident in the local market.
“Today, newly constructed Austin apartments are on sale as developers have temporarily oversupplied the Austin market,” Becker continued. “We are attempting to buy as many assets as possible before the market fundamentals firm up a couple of years from now.”
The buyer of the Oaks on Marketplace complex has snatched up a valuable multifamily property in a region experiencing a massive population influx.
Kyle’s estimated population as of July 2023 was 62,548, according to the latest census data, up 9% from an estimated 57,358 in the same month of 2022.
That makes it the second-fastest growing city among those with more than 50,000 residents. Georgetown north of Austin ranked No. 1, growing 10.6% to 96,312 residents.