X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

SAN ANTONIO-A 327-unit multifamily property in the northwest submarket sells after two years on the market. Santa Fe Place, selling for just under the $5.9-million ask at a 10% cap rate, required the assumption of a conduit loan.

Chivas West Apartments LLC in San Antonio bought the 91%-leased complex five years ago, subsequently placing it on the market as part of an overall portfolio sale. The buyer, a Southern California investment group, plans to renovate the property at 4210 Fredericksburg Rd.

A broker uninvolved with the transaction believes that, given the price and location, the buyers no doubt saw a solid rehab and repositioning opportunity. “At $18,000 per door, he can put in a couple thousand for renovation and up rents,” says Patton Jones, Apartment Realty Advisors’ sales director in Austin and San Antonio.

Jones tells GlobeSt.com that rehabs in the northwestern submarket are popular investments due to the nearby Texas Medical Center, USAA campus and retail corridor along Interstate 10. “Any areas where there is a strong employment base and a preponderance of 1970s apartments is a good opportunity to rehab, reposition and push the rents,” he adds.

Situated on close to seven acres, the 11-building Santa Fe Place was tied to a $4.86-million loan serviced by Cleveland-based Keybank Real Estate Capital. The 10-year loan, maturing in April 2013, has a 5.4% fixed-rate interest and 25-year amortization.

Built in the early 1970s, Santa Fe Place has efficiencies and one- and two-bedroom units, ranging from 350 sf to 1,025 sf. Its monthly rents go from $349 to $650.

Scott Weems, a broker with Hendricks & Partners’ San Antonio office, represented the seller. Mohammed Ashif, a private broker, represented the buyer.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.