Royal Vista is the jewel of the valley with little coming close to the quality of the asset in the region.
BROWNSVILLE, TX—Dallas-based developer, RightQuest, in conjunction with local partnerships JTMR LLC and JJR Group LTD, recently sold a 416-unit multifamily portfolio located in south Texas to an undisclosed buyer. The portfolio consists of the two phased communities known as Bella Vista Apartments and the more recently developed Royal Vista Apartments.
Royal Vista has 144 units within 110,700 square feet and was built in 2018 in Edinburg, TX. Bella Vista Phase I has 128 units within 103,216 square feet and was built in 2014 in Brownsville, TX. Bella Vista Phase II has 144 units within 113,544 square feet and was built in 2017 in Brownsville, TX.
"We've been calling Royal Vista the 'jewel of the valley' as nothing really comes close to the quality of this asset in that region," Ryan Harden, president of RightQuest, tells GlobeSt.com. "The buyer purchased Royal Vista in a pre-stabilized condition, evidencing the strength and desirability of the asset."
IBC Bank provided construction financing for the properties and BBG Inc. provided the market feasibility and demand analyses. Institutional Property Advisors, a division of Marcus and Millichap, represented the seller and JLL represented the buyer. The sale solidifies the successful execution of more than 3,000 apartment units in Texas by RightQuest and its principals.
The Port of Brownsville is the center of the region's import and export activity, housing major manufacturing companies such as Keppel Amfels. Ships carrying everything from grain to metals travel up the channel into the Gulf just south of South Padre Island. Aerospace engineering is also growing in the area, with SpaceX founder Elon Musk investing millions in 2014 in the construction of a new rocket launch site in Brownsville, according to US News & World Report.
Berkadia recently released third quarter multifamily figures for the largest South Texas cities, San Antonio and Houston, with distinct findings. Houston's job growth has been so strong that developers are accelerating construction to meet demand. This rise in job growth has translated to 94,900 new residents moving to Houston during the past year, with deliveries of 11,600 units coming online in the first three quarters of 2019, already more than double of all deliveries 2018.
In San Antonio, effective rents rose 3.7% since last year, above the national average of 3.2%. Despite this increase, San Antonio's annual share of wallet remains lower than the national average, still keeping San Antonio affordable among major markets. Developers have been tapering deliveries to achieve supply/demand parity, with rents elevating in a market that has a stable occupancy rate of 93.7%.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
