Multifamily Investment Follows Alamo City Job/Rent Growth
As the Medical Center neighborhood occupancies go up without new deliveries to offset strong demand, the submarket’s compelling rental increases and income growth have made it attractive for value-add investors.
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SAN ANTONIO—As occupancy in San Antonio’s Medical Center neighborhood rises without new deliveries to offset strong demand, the submarket’s compelling rental increases and income growth have made the area attractive for value-add investors looking for opportunities in the Alamo City. A recent example is the sale of Villas de Santa Fe, a 208-unit multifamily community.
Berkadia managing director Mike Miller, senior director Will Caruth, director Chris Ross and associate director Cody Courtney arranged the sale on behalf of Comunidad Realty Partners, a real estate investment firm based in San Diego with an office in Austin, TX. The price was undisclosed.
“As San Antonio’s construction pipeline remains active, occupancy rates continue an upward trajectory throughout the MSA that diminish any concern on the demand side,” Courtney tells GlobeSt.com. “Villas de Santa Fe demonstrated significant upside potential after the seller accomplished a value-add program throughout the asset, demonstrating the market’s strong multifamily fundamentals for investors seeking to maximize income growth in a rapidly growing area.”
Built in 1982, Villas de Santa Fe is located at 3601 Magic Dr. in northwest San Antonio’s Medical Center. The asset is strategically located near large-scale employers, retailers and destinations. USAA headquarters, UT Health San Antonio and South Texas Medical Center are about three miles away from the property, supporting more than 75,000 jobs in total. Interstate 410 is less than five minutes away, offering direct access to downtown San Antonio and the greater metropolitan area.
“Villas de Santa Fe presented a fully stabilized value-add opportunity with considerable upside potential in one of San Antonio’s premier locations,” said Miller. “After seeing a 4.5% rental increase over 2018 in the Medical Center submarket, the asset is poised for significant income growth in a multifamily market that shows continued population and job growth.”
One- and two-bedroom units include tile floorings, window coverings, pantry, solar screens and washer/dryer connections. Community amenities include a clubhouse, swimming pool, fitness center, picnic area, two clothes care facilities and a sports court.