SAN ANTONIO-Sendera Investment Group LLC has made its first acquisition in more than two years, paying roughly $15 million for the 252-unit Paseo Pointe Apartments here.
The Austin, TX-based firm nabbed the class A- property in an off-market deal from American Opportunity for Housing and American Agape Foundation Inc., a local non-profit organization. Mike Miller with Hendricks & Partners represented both the buyer and the seller in the transaction.
Sendera entered the San Antonio market in 2008 with the purchase of Rosemont Olmos Park, a 144-unit, class A apartment community, and has been looking to grow its local presence since then. “We’ve been aggressively pursuing properties in San Antonio, but we’ve been getting out bid for the most part,” says Christopher Davis, principal of Sendera. “A lot of interest has popped up in San Antonio over the past 12 months.”
Located at 3787 Perrin Central Blvd. in the northeastern part of the city, Paseo Pointe Apartments was built in 2003. Units average 821 square feet and rents for roughly 96 cents per square foot. At the time of acquisition, the property was 96% occupied.
Davis tells GlobeSt.com that Sendera considers Paseo Pointe Apartments a value-added investment opportunity. “We paid close to $60,000 a unit, which we feel is below replacement cost,” he notes. “That translates into a cap rate of close to 7% on 2003 construction. For us, that’s pretty attractive.”
Sendera made the acquisition with funds obtained through HUD’s 223(a)7 program, which provides refinancing for properties with existing HUD 221(d)4 construction loans. “We ended up with a 40-year loan with a 3.99% interest rate and 85% LTV,” Davis shares.
The new owners have changed the property’s name to San Mateo Apartments and are working to improve the property’s operations through better management, which includes upgrading the tenant mix, pushing rents and doing away with unnecessary concessions, Davis says. Currently, a portion of the property is dedicated to workforce housing. Under Sendera’s ownership, the property will operate as market-rate housing.
With its most recent acquisition, the firm now owns 1,700 units concentrated in Florida and Texas. This year, Sendera hopes to acquire 1,000 units primarily in Austin, Dallas/Fort Worth and San Antonio.
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