Apple Spending 1 Billion to Expand Site in Austin TX

Apple just recently announced their plans to spend 1 billion dollars, and create 5000 jobs to start and up to 15,000 jobs when finished.
But the big news (for me) is that I just recently invested in a multi-family apartment building a few minutes from there. Lots of work finding the right deal for me and all the investors who followed me on the deal and with a little help from Apple it’s going to pay off sooner than expected.

Old news

More Austin investors! :slight_smile: I think cap rate are really tight in Austin, unless you find a really good one. One reason I am not continuing in Austin at the moment. Care to share your numbers and what’s your expectation?

Better deals in Phoenix

I think investing in out-of-state multi-fam is the right strategy and provides some balance to a BA portfolio dominated by SFH.


Amen! Diversifying your BA appreciation play with cashflow multi-family is the way to go (at least for me). But I am not sure there are much deal for multi in Austin. @Elt1 can shine more light on multi market on Phoenix.

I invested in a group that built 250 units in Gilbert. 25% IRR. Rents going up at about 5% a year for new construction

Just came across this old news on my Xilinx research:

The new centre will focus on baseband development, and employ over 200 software engineers once opened.

It follows the launch of Ericsson’s Application Specific Integrated Circuit (ASIC) Design Center in Austin, Texas, at the end of last year to develop and test core microelectronics for 5G radio base stations.

I am on vacation right now in Las Vegas, when I get home next week I will look up the numbers for you.

With this news, I infer that Apple is cutting its costs in all front after the revised forecast. This is rare revision, happened 2nd time in the history of Apple.

That means Apple will silently move out (or rescind) all expansion projects, including Austin project, until future growth is revived.

hanera may not like to hear this, but Apple shelved similar expansion projects in the past until growth was visible.

Unless it is a nice new apartment complex, duplex, quadplex MF type units are not desirable outside BA IMO. Quality of tenants is usually quite bad.

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Similar opinion. That is your experience in Atlanta?

Yes. They are usually in undesirable areas, and generally you get the worst quality tenants. You will, however get good cap rates if you want to deal with the risk of vacancy and evictions, which I assume some people are going after. There’s enough housing stock in SFH / condos / new apartments that people don’t have to resort to a quadplex. I’d rather syndicate a large new apartment complex in Atlanta than get MFH unit. There could be some OK MFH exceptions maybe in the center of town next to the park , but that is not the norm. I was shocked when I saw how coveted MFH here were in the Bay area when I moved here (probably for cap rate reasons). You can get pretty decent tenants here in MFH due to the shortage of housing.


Your good is theoretical right? After accounting for vacancy and evictions, is the effective cap rates still as good as the desirable neighborhoods? Ignoring your cost of labor and house appreciation.

Yea, theoretical. Never did the full calc on one, but I would guess effective rate would be maybe even (ie. not worth the effort if you have enough capital to deploy).

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I am sure other local tech giants will start austerity programs following Apple.
That old Apple campus announcement at Coyote Valley drove MH home prices up at par with Cupertino homes then for 9 months. It was Cisco’s intend to move headquarter to same place in 2000 saving money. Ditto happened to housing prices.
Sam Shueh


@manch is quietly preparing to move to Austin. Downtown and Lake Travis are popular with Caucasians. You should go to North Austin/ Northern Suburbs.

I can see myself buying rentals in Austin. Maybe we should have a meetup in Austin sometime. :smile:

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Downtown :-1: Popular places for rentals are North Austin, Northern Suburbs, SW Austin and East Austin.