Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles
SAN ANTONIO-MC Companies has made its second acquisition here, buying The Place at Lincoln Green, a 680-unit, distressed apartment community. The Scottsdale, AZ-based firm bought the class B- property from special servicer, C3 Asset Management.
MC Companies’ first local acquisition, The Place at Overlook, has been a strong investment for the company and has encouraged it to pursue additional investments in the market, according to Ken McElroy, principal of MC Companies. The Place at Overlook, which is located about one mile from The Place at Lincoln Green, is 96% occupied, he adds.
“San Antonio is a very unique market – its economy is primarily driven by healthcare, and we think healthcare is going to be a strong industry for the next 10 years,” McElroy tells GlobeSt.com. “We like the market because of the demographics.”
Marketed by the Balthrope Group of Institutional Property Advisors, a Marcus & Millichap company, The Place at Lincoln Green is located between Interstate 10 and Highway 281 within minutes of South Texas Medical Center.
“We love the location,” McElroy says, adding that the 1980s-era property received more than 30 offers. “It’s an amazing project that saw its value dwindle through poor ownership and management. We saw an opportunity to capitalize and reposition the property.”
C3 Asset Management took back the property in May 2010 and assigned property management and leasing to Greystar. At the time, the property was 60% occupied in a 95% occupied market, McElroy says.
MC Companies plans to invest $7 million to renovation the property including both interiors and exteriors. When the renovation is complete, McElroy says The Place at Lincoln Green will be a class B+ asset. Moreover, he anticipates it will achieve rental increases of 10%.
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