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valonBay Communities has acquired a 126-unit townhome community in Bee Cave, near Austin, for $49 million. The Virginia-based REIT paid approximately $390,000 per unit for the rental complex at 4810 Brisa Way. NRP Group was the seller, and the property is currently 95% occupied. This marks AvalonBay's sixth multifamily purchase in Texas since 2021.

    The company owns and manages five communities across the Dallas-Fort Worth metroplex, including properties in Farmer's Branch, Frisco, and Addison. The Bee Cave property, built in 2022, is AvalonBay's first ready-to-lease project in the Austin metro. Construction has also begun on an apartment development in North Austin's Tech Ridge neighborhood.

    AvalonBay identified Dallas and Austin as priority expansion markets in 2020, along with South Florida, Denver, and Raleigh-Durham. Despite record multifamily supply pushing down rents in those metros this year, the company sees it as a "great window" to enter the market. Lucas notes that AvalonBay is just beginning to tap into Texas' potential, citing the national interest in the state's multifamily markets waning slightly due to declining rents.

    However, major players like Blackstone and Brookfield are making significant investments in Texas multifamily markets, even amid elevated debt levels and a temporary dislocation in lending and sales. AvalonBay is one of the companies looking to find an advantage in lower-density suburban housing. "I think it will really pay off when we're delivering units in 2026," said Jennifer Wiebrand, senior vice president of development for Texas.