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SAN ANTONIO-A 327-unit multifamily property in the northwest submarket sells after two years on the market. Santa Fe Place, selling for just under the $5.9-million ask at a 10% cap rate, required the assumption of a conduit loan.
Chivas West Apartments LLC in San Antonio bought the 91%-leased complex five years ago, subsequently placing it on the market as part of an overall portfolio sale. The buyer, a Southern California investment group, plans to renovate the property at 4210 Fredericksburg Rd.
A broker uninvolved with the transaction believes that, given the price and location, the buyers no doubt saw a solid rehab and repositioning opportunity. "At $18,000 per door, he can put in a couple thousand for renovation and up rents," says Patton Jones, Apartment Realty Advisors' sales director in Austin and San Antonio.
Jones tells GlobeSt.com that rehabs in the northwestern submarket are popular investments due to the nearby Texas Medical Center, USAA campus and retail corridor along Interstate 10. "Any areas where there is a strong employment base and a preponderance of 1970s apartments is a good opportunity to rehab, reposition and push the rents," he adds.
Situated on close to seven acres, the 11-building Santa Fe Place was tied to a $4.86-million loan serviced by Cleveland-based Keybank Real Estate Capital. The 10-year loan, maturing in April 2013, has a 5.4% fixed-rate interest and 25-year amortization.
Built in the early 1970s, Santa Fe Place has efficiencies and one- and two-bedroom units, ranging from 350 sf to 1,025 sf. Its monthly rents go from $349 to $650.
Scott Weems, a broker with Hendricks & Partners' San Antonio office, represented the seller. Mohammed Ashif, a private broker, represented the buyer.
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