SAN ANTONIO-Tryperion Partners, through its Real Estate Fund I LP, has entered the San Antonio area with it buy of the 252-unit Oakwell Springs apartments. The Los Angeles buyer teamed with Dallas-based Presidium Group on the buy, with plans to upgrade and reposition the property.
According to Tryperion's Eliot Bencuya, his company had reached out to Presidium Group at the beginning of summer, 2013 to seek out potential transactions in San Antonio. Ultimately, Oakwell Springs, at 1946 NE Loop 410 provided a solid asset in an area with good economic fundamentals, "but not the same price premiums as coastal properties," Bencuya tells GlobeSt.com. "We like deals that have some cash flow, as well as some opportunity to create upside. We want to make the assets in the communities they serve better."
The seller on the transaction was not indicated, though the Bexar Central Appraisal District lists the previous owner as SW Loan A LP/Starwood Capital Group of Greenwich, CT. Though a sales price was also not listed for this transaction, a prospectus describing Tryperion's RE Fund I LP indicates it is seeking out direct and joint-venture value-add opportunities requiring a $5 million to $15 million equity investment.
"We're looking for joint venture opportunities in the Western United States," Bencuya adds. "Within that basis, (Oakwell Springs) and Presidium fit well with the strategy. The asset is in a good, strong location within San Antonio and is a true value-add story."
Though not specific about renovations to the asset, Bencuya says the amenities will be upgraded, as will the interior units. Presidium will handle on-site management.
Not much is known about Oakwell Springs, other than it was once known as Crystal Springs. In 2002, various news sources reported Performance Properties obtaining approximately $2.2 million in mezzanine financing to acquire the property for approximately $10 million.
Tryperion, in the meantime, is searching out other opportunities, not only in San Antonio, but in the west and southwest of the United States, with a focus on secondary markets. According to Tryperion's website, its fund is looking for office, retail, multifamily and hospitality product, though no land or development.
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