Harbor Group Acquires 828 Units in San Antonio
Newmark arranged $47.4 million in Freddie Mac financing for the assets.
Affiliates of Harbor Group International have acquired a three-property multifamily portfolio, totaling 828 units, in San Antonio. Newmark facilitated the deal for the seller, a joint venture between Multifamily Acquisition Advisors and Blackhawk Property Holdings.
The portfolio encompasses three garden-style properties: the 192-unit Spice Creek, located at 8802 Cinnamon Creek Drive; the 300-unit The Clara, located at 10707 W. Interstate 10; and the 336-unit The Maxwell, located at 1431 Cable Ranch Road.
The brokerage company also secured a Freddie Mac loan on behalf of the new owner. According to Yardi Matrix, Spice Creek was funded through a $11.6 million loan, The Clara received $18.1 million in acquisition financing and The Maxwell became subject to a $17.7 million note.
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All three properties encompass units ranging from one- to two-bedroom apartments featuring kitchens, walk-in closets, as well as private patios or balconies available in select units. The common-area amenities available at the properties include swimming pools, outdoor picnic areas with grilling stations, clubhouses and fitness centers.
The properties offer access to some of San Antonio’s major employment hubs, including Westover Hills and the 900-acre South Texas Medical Center, supporting nearly 60,000 jobs. Additionally, the assets offer connectivity to an array of retail and entertainment destinations, including the Shops at La Cantera, The RIM, Alamo Ranch and Culebra Market.
The multifamily sector showcasing resilience
Newmark Senior Managing Director Matt Michelson brokered the transaction on behalf of the sellers, while Executive Managing Directors Henry Stimler, William Webe and Matt Mense, along with Senior Managing Director Ari Schwartzbard and Vice President Daniel Sarsfield, arranged financing for the new owner.
Newmark research shows that the multifamily sector continued to enjoy investor confidence in the fourth quarter of 2022. While rent hikes are projected to slow down across the nation, demand remains relatively healthy.
The same market overview reveals that the growth in demand, driven by renters relocating from expensive metropolitan areas to more budget-friendly Sun Belt cities, including San Antonio, was the primary factor behind the rental rate escalation.