SAN ANTONIO—San Antonio's population continues to rise at a pace faster than the national rate of growth, especially among individuals between 20 and 34 years old, the prime renter cohort. Some of these individuals are moving to the market in search of jobs, and gains in service-related industries are boosting demand for apartments. As home prices continue to rise faster than incomes, these individuals will continue to favor apartments over homeownership, placing additional downward pressure on vacancy and encouraging rent gains. In addition, investors are targeting San Antonio apartment assets for higher yields as vacancy tightens and rents rise, according to the latest Marcus & Millichap San Antonio multifamily report.

An example of that type of investor interest was the recent acquisition of Crescent at Alamo Heights, a 306-unit multifamily apartment community located in the marquee neighborhood of Alamo Heights. A joint venture between AMAC Holdings and EBEX Holdings teamed up with property management firm United Apartment Group to acquire the community for $37 million. The new owners have plans for an extensive renovation and rebranding strategy that will include both interior and exterior improvements, as well as amenity upgrades.

“Crescent at Alamo Heights enjoys a prime location within one of the most desirable submarkets in San Antonio,” says Maurice Kaufman, a founding principal at AMAC Holdings. “The property has not been renovated in over 10 years and presents a tremendous value-add opportunity through unit upgrades and an operational overhaul.”