SAN ANTONIO, TX-LG Capital LLC has beaten out 14 other investors to claim Madison at Pipers Creek, a 292-unit, class B apartment complex here. The Dallas-based firm paid $11.75 million for the community, which was sold by BPG Properties Ltd.
BPG Properties had owned the since 2003 when it acquired it as part of a larger portfolio of assets. Madison at Pipers Creek is the only property the firm owned here, and with the disposition, it has exited the local market – at least for now, according to Greg Curci, acquisition manager at BPG who was responsible for overseeing the disposition.
“We didn’t sell the property because we don’t like San Antonio – we just reached our natural hold period,” Curci explains. “We typically hold for five to seven years, and we’ve owned this property for eight years.”
Curci tells GlobeSt.com that BPG continues to maintain a presence in both Dallas and Houston and previously owned properties in Austin, in addition to this property in San Antonio. “We would like to continue to own properties in the four major cities in Texas,” he adds.
BPG tapped Will Balthrope, senior director, and Ryan Epstein, director, with the Balthrope Group of Institutional Property Advisors, a Marcus & Millichap company, to market Madison at Pipers Creek. “The demand for apartments in San Antonio prior to the six to nine months has been limited to the class A market,” Curci says. “It’s only recently that we felt demand trickled down to the B class, and once we sensed that, we put it on the market.”
Located within one mile of I-410 and five miles of Lackland Air Force Base in the Far West submarket, Madison at Pipers Creek offers nine different floor plans, all with private balconies or patios and washer and dryer connections. The gated community includes several on-site amenities such as a clubhouse, two pools, fitness center, playground and on-site management and maintenance. At the time of the sale, the community was 99% leased.
“Most of the prospective buyers that bid on this property did so with an eye toward upgrading the interiors and capturing some form of rent premium,” Curci says. “That is the upside play.”
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