Well-Located Multifamily Remains A Top Pick by Texas Investors
Sun Holdings Group’s acquisition of Tradehouse at Bulverde Marketplace was motivated by San Antonio being a resilient market supported by a steady workforce, and the fact that multifamily is a strong asset class.
SAN ANTONIO—While some sectors of commercial real estate industry remain shuttered, multifamily remains an attractive investor choice due to housing demand, especially in key markets. In fact, San Antonio’s multifamily market set a new sales volume record at nearly 18,000 units sold as of fourth quarter 2019, according to CoStar Analytics. This rationale was part of the motivation behind Sun Holdings Group’s acquisition of Tradehouse at Bulverde Marketplace, a 330-unit class-A apartment building.
“San Antonio is a relatively resilient market supported by a steady workforce, largely comprised of military, medical and grocery workers,” Ido Blatt, managing partner of Sun Holdings Group, tells GlobeSt.com. “As long-term investors, we continue to believe that multifamily is a very strong asset class and its fundamentals are overall favorable. Additionally, we were able to take advantage of the low interest rate environment.”
Located at 17038 Bulverde Rd., the property is positioned within the Bulverde Marketplace community, a 104-acre master-planned mixed use development anchored by HEB in north-central San Antonio. The three-story garden-style apartment is in walking distance to dining and retail, and provides access to Camp Bullis, North Central Baptist Hospital, the University of Texas at San Antonio and Loop 1604.
Despite the slowdown associated with COVID-19, the transaction rolled along smoothly, Blatt says. Freddie Mac and Berkadia’s Cutt Ableson secured financing.
“We did not have any delays with the transaction,” Blatt tells GlobeSt.com. “We worked closely with the seller, our lender and our equity partners during the last couple of months to ensure timely closing of the transaction despite the pandemic.”
Built in 2018, the property offers one- and two-bedroom floorplans of up to 1,532 square feet. Amenities include outdoor relaxation areas, a pool and outdoor kitchens, along with an indoor social lounge, billiards room and center.
SYNC Residential, the property management arm of Sun Holdings Group, will manage Tradehouse at Bulverde Marketplace. The company also owns and manages two other properties in San Antonio and four other properties in Central Texas.
“As a long-term goal-oriented firm, we will continue seeking opportunities to expand our national multifamily portfolio with strategically located assets,” said Blatt.