SAN ANTONIO-Adams LaSalle Institutional Apartments has made its first acquisition in the Alamo City, buying Three Fountains Apartments from a TIC investor.
The Chicago-based investor bought the 272-unit, class A community for an undisclosed amount, placing a new Freddie Mac loan on the property at closing. Industry experts estimate Three Fountains Apartments traded for about $22 million.
Including its acquisition of Three Fountains, Adams LaSalle has purchased three multifamily properties this year, according to Tim Burns, a principal with the company. “We are actively pursuing growth,” he tells GlobeSt.com. “We would like to buy 2,000 to 3,000 units in 2011.”
Adams LaSalle is looking for investment opportunities in southwest markets, particularly those in Texas. “We like the stability and job growth there,” Burns says, noting that the firm bought properties in Houston and Phoenix this year.
The firm has been looking for an opportunity to buy in San Antonio for at least a couple of years. “We’re looking for assets in specific submarkets within San Antonio, and we’re looking for a specific type of asset--one that is 10 to 15 years old that we can upgrade,” Burns explains.
Three Fountains was marketed by Will Balthrope and Ryan Epstein of the Balthrope Group of Institutional Property Advisors, a Marcus & Millichap Co. “We’ve worked with them before, and they knew we were looking in San Antonio,” Burns says.
Located in the Westover Hills submarket on Culebra Road, Three Fountains consists of 20 two-story apartment buildings on 13.51 acres. The community, which was built 12 years ago, includes a clubhouse, resort-style swimming pool and spa, fitness center, controlled access gates, barbecue areas, detached garages, and sand volleyball court. It was 94% occupied at closing.
Burns says Adams LaSalle plans to complete both exterior and interior capital improvement programs including clubhouse renovations, pool upgrades, landscape and signage enhancements. “We are going to spend about $4,000 to $5,000 per unit--units will get new flooring, fixtures, lighting, countertops and paint schemes,” he notes.
Adams LaSalle’s multifamily operating affiliate ALR Properties Company LLC will manage Three Fountains.
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