Flurry of deals highlights growing investor interest in multi-family real estate in San Antonio

A New York-based company bought four apartment complexes in San Antonio for nearly $ 109 million, in a recent wave of multi-family purchases by businesses based outside the region.

The Sun Equity Partners acquisition includes Park Vista at 5470 W. Military Drive near Joint Base San Antonio-Lackland; Pearl Park at 5100 NW Loop 410 near South Texas Medical Center; and Merida at 2167 NE Loop 410 and La Silva at 3903 Barrington St., both near the Northeast Baptist Hospital.

The properties were built in the 1960s, 70s and 80s and include 1,230 rental units, according to Rosewood Realty Group, which represented both buyer and seller, San Antonio-based Kairoi Residential.

Sun Equity Partners, a private real estate investment and development firm, owns residential, office and retail properties in the Northeast as well as San Francisco, according to information posted on its website.

“This transaction indicates strong confidence in San Antonio’s rapid growth on the part of foreign investors,” Rosewood Realty’s Matt Yeckes said in a statement.

San Antonio’s growing population, high demand for apartments, and lower real estate prices than many other major cities are attracting more investors to the area.

According to a report by ApartmentTrends.com from Austin Investor Interests, 24 sales of multi-family complexes were reported during the second quarter ending in May, most of which were located in northwest San Antonio. This is a 50% increase from the previous quarter, a sign that “investor interest continues to flow into the San Antonio market,” the company noted.

Among the deals: Lawrence, NY-based River Rock Capital bought apartments at 7714 Louis Pasteur Drive and 7403 Wurzbach Road near South Texas Medical Center earlier this month, according to Newmark Group, which represented seller Alliance Residential.

These sales were part of a portfolio of four properties that included two complexes within the Texas Medical Center in Houston, which were purchased by another company.

“This portfolio offered investors the opportunity to acquire large impressions in two large medical centers, accessing economies of scale. These properties were sought after by institutional and private family office investors, ”said Newmark vice president Patton Jones. “With the expected huge growth in the healthcare sector, multi-family assets near medical centers will benefit from a steady flow of tenants for years to come. “

Also this month, SPI Advisory purchased Birwood Heights off the 1604 Loop near the NW Military Highway and Southtown Flats near the Blue Star Arts Complex.

The acquisitions were the Dallas-based private equity firm’s first in San Antonio and it is looking to buy more local complexes.

“We are very optimistic about multi-family San Antonio and believe this is the perfect time to enter the market,” said Michael Becker, director and co-founder of SPI. “The supply and demand fundamentals are in excellent shape and we anticipate many years of solid economic growth to come. “


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