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CBRE GI acquires Austin apartments

The acquisition, CBRE GI’s first recent investment in the rapidly-growing Texas city, was made on behalf of insurance giant Allstate.

CBRE Global Investors (CBRE GI) has acquired an Austin, Texas apartment on behalf of insurer Allstate, the Los Angeles-based real estate investment firm said Tuesday.

CBRE GI made its first recent foray into Austin real estate by purchasing The Mosaic at Mueller, a class A 441-unit property with 96 percent occupancy. The apartments are located at 4600 Mueller Road, four miles from Austin’s downtown. Mosaic’s amenities include a fitness center, two pools and 8,669 square feet of fully leased ground floor retail.

The purchase is a continuation of Allstate’s partnership with the firm. Allstate, based in Northbrook, Illinois, has invested in CBRE GI’s commingled funds for more than a decade, and has maintained a separate account for more than four years with the firm. A spokeswoman for CBRE GI declined to disclose the purchase price and terms of the transaction.

Jeff Torto, CBRE GI’s senior managing director, highlighted Austin’s strong job growth, low unemployment rate and business-friendly environment as factors that drive rental demand and make real estate investment attractive.

“We are very interested in Austin,” Jeff Torto told PERE. “With its highly educated labor pool, affordability, and expanding roster of industry-leading technology firms, we expect Austin will continue to attract new business and residents to the area.”

Allstate’s real estate investments are concentrated close to home, with 61 percent of its holdings in North America as of June 30. About 46 percent of its investments are in direct strategies, according to its website. The insurance company does not disclose its total real estate investments.