TIC Buyer Takes Control of 543-Unit Portfolio

SAN ANTONIO-Cottonwood Capital LLC has expanded its Texas portfolio with the acquisition of a two-asset, 543-unit portfolio. The sales price is being kept under wraps, but area sources believe the class B units traded for $45,000 to $55,000 per door.

The just-sold properties are the 285-unit Blue Swan Apartments at 11710 Parliament St. and 258-unit Copperfield Apartments at 11245 Sir Winston St. According to Patton K. Jones with Apartment Realty Advisors in Austin, Olympic Investors LLC of Seattle had come to the end of its hold cycle on the class B complexes, both built in the 1980s. The seller’s broker tells GlobeSt.com the 91%-leased portfolio attracted eight bona fide offers, with Cottonwood Capital winning the day because of its track record with similar assets.

“This is a group that’s aggressively moving into Texas,” Jones explains. “It’s a value-add buyer that is seeking mid-1980s properties to make upgrades and bump rents.” Blue Swan and Copperfield fit the company’s profile so he says “we asked them to come and take a look and they made the offer.” He says the Salt Lake City-based tenants-in-common buyer plans to invest another $5,000 per unit into interior upgrades of both complexes.