AUSTIN-The San Antonio Alternative Housing Corp. has beat out more than 10 offers to lay claim to the 252-unit Runnymede Apartments. The buyer has paid Univesco nearly $8 million for the class C complex and plans to invest $21,000 per door into upgrades.
Tom Burns, associate partner in Dallas for Phoenix-based Hendricks & Partners, says the Plano, TX-based Univesco had owned the 35-year-old complex at 1101 Rutland Dr. at least 10 years. "The owner knew the property needed capital and they didn't want to recapitalize it," says Burns, who represented the seller along with associate partner Jay Gunn in Hendricks & Partners' Dallas office and partner Ellen Muskin in Austin.
Burns tells GlobeSt.com that Univesco's long-term ownership of the 92%-leased complex was attractive to potential buyers. "The main thing most of them saw was that, in order to put tax credits on the property, it has to be owned for a term of 10 years or more by the previous owner," he explains. "This property passed the litmus test." As a result, the new owners can seek low-income tax credits to assist with upgrade costs without having to raise tenants' rents. The one-, two- and three-bedroom units have in-place rents of $609 to $839 per month. Units range from 600 sf to 956 sf.
Burns says the San Antonio Alternative Housing ended up with the asset because it had the highest bid. The buyer is planning a repositioning, but it's uncertain if a name change is in the works for the 27-building complex on 14.5 acres.
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