"We like the market," explains Brent Arensberg, vice president with Price Development Group, explaining the rationale behind the purchase of the asset on 4330 Spectrum One. "We like Texas in general, but are bullish especially on San Antonio."
He tells GlobeSt.com that the reason for the liking is San Antonio's fundamentals. "IT's coming out of the recession more quickly and doing much better than other cities," Arensberg says. "There's been fewer job losses, more stability and we're hoping for a quick turnaround." The other deal appeal was the asset itself, which was built in 2005 by Alliance Residential and is located in the northwest submarket, which is near a lot of high-end employers such as USAA.
The 10-building complex, which is 94% occupied, sits on 9.32 acres and offers one-, two- and three-bedroom units. The average unit size is 826 square feet, with $965 being the average monthly rent. Patton Jones and Casey A. Fry with Apartments Realty Advisors brokered the transaction.
With Broadstone Colonnade firmly in its possession, Price Development Group isn't shy about the fact it wants more units in San Antonio. Arensberg says the goal is to acquire 1,000 units in the area by the end of 2010. The preferred target asset should be class A, built in 1995 or later and offering "something with a little more rent loss in place and a seller that actually isn't a seller," Arensberg comments.
While this doesn't necessarily mean "distressed assets," it does mean Price Development Group would like to deal with sellers that are putting product to market that has to be sold. "It could be a development group focusing on what it needs to to get cash, or a pension fund that needs redemption for various reasons," Arensberg says.
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