Falcon Hits Turnaround Goals, Sells 134 Units

SAN MARCOS, TX-In an end to a three-year hold, Austin-based Falcon Southwest has sold its only holding in the city, the 134-unit Bishop’s Square Apartments. Seven offers were on the table, with the winner paying $8 million to $10 million for the six-year-old student housing complex.

Patton Jones, managing director with Apartment Realty Advisors’ Austin office, says Falcon Southwest came to the end of its investment hold for the 94%-leased asset at 109 Craddock Ave. Jones worked with ARA colleague and national student housing group director Christopher Bancroft to sell the 315-bed complex. The deal seated Champaign, IL-based buyer, Campus Acquisitions LLC, with its first asset in San Marcos.

“We sold Campus Acquisitions West Campus in Austin and knew they were looking to grow their portfolio,” Jones explains. “They have an excellent track record of acquiring student properties. This one fit their business model very well.” Campus Acquisitions acquired the 62-unit Texan West Campus at 2704 Rio Grand St. in February 2007.

Jones tells GlobeSt.com that Campus Acquisitions’ plans are to add some amenities to the complex, but there are no huge changes in the works for the facade or landscaping. He points out that the asset, situated on 10.8 acres, has units that look more like town homes than apartments. The unit mix consists of one, two and three bedrooms, with the average unit at 1,046 sf. The average monthly rent stands at $1.30 per sf.

In tandem with the San Marcos acquisition, Campus Acquisitions also bought the 170-unit, 472-bed Sterling by the River Apartments at 500 Alexander Rd. in West Columbia, SC near the University of South Carolina. The asset was completed in 2007 by Dinerstein Cos. in Houston and represents Campus Acquisitions’ first buy in South Carolina. “Campus Acquisitions was happy to get into that market and were glad to get a Dinerstein asset,” Jones says. “This is Sterling’s first school year in operation and it’s 98% occupied.”