SAN ANTONIO-Interurban Properties ended its approximate five-year hold on the 392-unit Churchill Park Apartments by selling the property to SGI Partners in an off-market transaction. In acquiring the class B multifamily property, SGI Partners opted to assume a Fannie Mae loan currently in place, which has approximately two years remaining.

"The property was purchased a little below market rate, and with about a 7-cap going into it. The buyer decided to assume the financing, get some interior upgrades completed then refinance it in about 18 months when the prepayment on the loan goes away," explains Mike Miller from Hendricks-Berkadia's San Antonio office. Miller teamed with colleagues Chris Ross and Will Caruth to negotiate the sale of the asset at 1200 Patricia Dr. The sales price was undisclosed, and the Bexar Central Appraisal District assesses the asset at approximately $11 million.

Miller tells GlobeSt.com that the seller was interested in disposing of the 96%-occupied complex, but didn't want it widely marketed. Meanwhile, the buyer had acquired the nearby Summercreek Apartments at 11851 Belair Dr. "They said they'd love to take a look, they saw it and wrote an offer," Miller says, adding that eight units caught fire because of an electrical shortage during the escrow period, but the buyers moved forwards with the acquisition anyway.

Much like the other major cities in Texas, San Antonio is seeing average multifamily occupancy at around 96%. According to statistics released by Hendricks-Berkadia, average rents increased by approximately 1.2% from the year before. "There are a lot of buyers looking to acquire multifamily here in San Antonio, as well as in Austin, Corpus Christi, Houston and elsewhere," Miller observes. "The investments provide a safe, steady return with good yield."