Bonner Carrington Austin Portfolio

About Bonner Carrington Austin Portfolio

Cushman & Wakefield has been engaged by Bonner Carrington (the “Sponsor”) as exclusive advisor to arrange the recapitalization of a five-community, 1,079-unit affordable and affordable active adult community portfolio (the “Portfolio”) located across the Austin MSA. The Portfolio presents prospective investors an exceptional opportunity to acquire a significant equity position in institutional-scale, income-restricted housing alongside an experienced sponsor who developed and continues to operate every community in one of the fastest-growing metropolitan areas in the United States.

The Portfolio comprises 1,079 units and approximately 1,039,871 rentable square feet across five communities in four submarkets and three counties: Cypress Creek at Lakeline (Cedar Park), Cypress Creek at River Bend and Mariposa at River Bend (Georgetown), Mariposa at Hunter Road (San Marcos), and Cypress Creek at Stoney Ridge (Del Valle). The communities were delivered between 2003 and 2025 and have been meticulously maintained under continuous Bonner Carrington ownership. The three Cypress Creek communities, totaling 696 units, are income-restricted affordable communities, and the two Mariposa communities, totaling 383 units, are income and age-restricted 55+ active adult communities. Together the communities offer an average unit size of 964 square feet — well above typical affordable product — and a bedroom mix weighted toward the family and active adult configurations that are structurally undersupplied across the market.

Every community in the Portfolio is income-restricted under a Land Use Restriction Agreement and fully exempt from ad valorem real estate taxation through non-profit entity partnership, so long as the structure is maintained — the single largest driver of the Portfolio’s operating margin and a structural advantage that a conventionally owned portfolio cannot replicate. In-place rents sit approximately 26% below the maximum levels the regulatory agreements permit, providing substantial embedded income upside that a new owner can capture entirely within the existing affordability framework. That upside compounds against a rent ceiling that has risen at a rate approaching 7% annually over the past five years.

The Portfolio conveys with $131.6 million of in-place, fixed-rate debt at a 4.05% weighted average interest rate, with maturity dates beginning in 2036. Bonner Carrington will retain a meaningful ownership stake and will continue overseeing the assets on a day-to-day basis, ensuring continuity of operations and direct alignment with the incoming partner. The recapitalization offers a rare combination of durable, formula-driven income, a below-replacement-cost basis, a permanent tax exemption, and long-dated in-place financing sponsored by a proven Texas owner-operator who has developed nearly 6,000 units over the span of four decades.