306-Unit M-F Property Trades in San Antonio’s Steaming Hot Market
- Feb 11, 2013
Multi-family sales volume in San Antonio closed 2012 with a bang, and the change in ownership of the 306-unit Manor at Castle Hills was among the long list of transactions. Institutional Property Advisors orchestrated the transaction, acting on behalf of both seller and buyer.
The 236,200-square-foot property, developed just over 10 years ago by Duke Inc., had quite a few features to attract the investment community, namely historic stability in rent growth and occupancy, buoyed in no small part by its location. Carrying the address of 1835 Lockhill-Selma Rd., The Manor sits in what IPA executive director Will Balthrope describes in a prepared statement as a “high-barrier-to-entry infill location that is insulated from new development.” The apartment community also boasts the advantage of sitting on a site within close proximity of a host leading employers ranging from Fortune 500 financial services concern USAA to the behemoth, multi-institute South Texas Medical Center.
In general, the multi-family industry is thriving in the second most populous city the Lone Star State. “The San Antonio apartment market is just really, really healthy right now,” Janine S. Claycomb of apartment research firm Austin Investor interests, told Commercial Property Executive. “Occupancy rates are pretty stable, the rents are going up and there’s a lot of new construction. The average occupancy level reached 97.8 percent in the third quarter, per a report by the firm, and rents rose 1.93 percent, year-over-year.
Investors are clearly taking note; apartment sales in 2012 came within inches of the billion-dollar mark. “There’s just a lot of interest in the San Antonio market right now,” Claycomb said.