San Antonio Goes into Expansion Overdrive
A joint venture was attracted to the Vistana due to the growth of downtown from the newly opened Frost Tower to the pending expansion of the UTSA campus and the reopening of the Alameda Theatre.
SAN ANTONIO—The city is undergoing a massive expansion, from education, housing and office all a part of the construction mix currently underway. In the education category, the University of Texas at San Antonio plans to quadruple the size of its downtown campus into the West Side during the next 10 years.
For the housing component, the San Antonio Housing Authority plans to build two mixed-income housing developments near the circa-1939 housing projects west of Alazan Creek. A mile north of this project, VIA Metropolitan Transit hopes to transform the abandoned Scobey industrial complex into a housing and office development.
Nonprofit developer Alamo Community Group is looking to build a 160-unit four-story affordable housing complex at 811 W. Houston St. and in downtown, Weston Urban is co-developing the 23-story Frost Tower. The developer is also obligated to build 265 housing units on properties it owns in the area.
Another existing housing/mixed-use community is the 17-story Vistana, with another 247 residential units and more than 30,000 square feet of retail space in downtown. Historic Market Square and Milam Park are a five-minute walk and the downtown UTSA campus is a 10-minute walk from the property.
A joint venture between Duncan Hillsley Capital and Rincon Real Estate Investments recently acquired the Vistana asset for an undisclosed price.
“We were attracted to the Vistana due to the exciting growth of West downtown, from the newly opened Frost Tower to the pending expansion of the UTSA campus and the reopening of the Alameda Theatre,” Shane Hillsley, managing director of Duncan Hillsley, tells GlobeSt.com. “Our partnership plans on re-invigorating the Vistana with improvements to every aspect of the property so that it can be a catalyst to the future fabric of this neighborhood.”
Berkadia arranged acquisition financing for the property. Senior director Brad Williamson of Berkadia’s Miami office secured the loan on behalf of the joint venture. A national bank originated a five-year 3.11% fixed rate non-recourse loan with future fundings for the renovation of the property. The interest-only period is five years.
“The property’s location and integration of multifamily with retail, coupled with an extensive value-add program, will allow the sponsor to create an asset that complements nearby developments such as the new Frost Bank Tower,” said Williamson.
The Vistana is located at 100 North Santa Rosa St. near major transit routes and employment hubs. Interstate 10, Interstate 35 and Interstate 37 are about five minutes away, providing access to the rest of San Antonio and Texas.
Built in 2009, the Vistana includes studios, one-, two- and three-bedroom units. The community has downtown and park views, an expansive amenity deck on the sixth floor overlooking the city, and a convenient self-storage facility within the property.