JV's Texas Disposition Yields Nearly $42M

SAN ANTONIO-In an off-market deal, an Aventura, FL-based investment group has acquired the 596-unit Promontory Pointe from Metra United. The asset was one of five left from a 10-property Texas portfolio that went up for sale in 2004.

Promontory Pointe, now 96% leased, has sold for close to the original ask of $42 million. Advenir Inc. took the deed to 4114 Medical Dr. at a mid-5% cap rate. Don Ostroff, senior director for Dallas-based Cushman & Wakefield of Texas Inc., says Westdale Asset Management did a great job of stabilizing the asset and raising rents. He says the buyer will take management in-house.

"The key thing about this asset is it's the second largest class A property in the city," Ostroff says. "The only one larger is Signature Ridge, across the street, which has 16 units more than we do."

Ostroff tells GlobeSt.com that Promontory Pointe's location has an added plus: huge barriers to entry. Advenir plans some improvements to the property. "There are no more sites left in the medical center area so it's a great opportunity for Advenir to build this property into something equaling the largest class A in town," he adds.

Built in 1995, Promontory Pointe features one- and two-bedroom apartments, ranging from 747 sf to 1,378 sf. Monthly rents go for $699 to $1,199 per unit. C&W brokers Lamont Rattler and Jason Boyce assisted Ostroff with the sale.

With Promontory Pointe gone, Dallas-based Alon Group and its Boca Raton, FL operating partner plan to bring their remaining four assets in San Antonio to market in a few weeks. The class B package consists of the 140-unit Cimarron City at 1950 Universal City Blvd.; 232-unit Peppermill at 2124 Universal City Blvd.; 466-unit Sunset Canyon at 2170 Thousand Oaks Dr.; and 244-unit Kenton Place at 14650 Nacogdoches. "That will clear out the Metra portfolio," says the broker, who closed the second off-market sale in nearly three months for the JV.