JV Pays $27M for San Antonio Portfolio

Roselawn Apartments

The non-performing notes of four San Antonio, Texas, apartment communities have been purchased for $27 million by an East Coast-based joint venture. New York City, N.Y.–based SKW Funding and Boston, Mass.-based Bain Capital Credit have come together to acquire the four-community portfolio, which includes more than 650 units.

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The acquisition of the distressed apartment portfolio notes is part of a plan to acquire $500 million worth of notes over the next two to three years. The notes previously were owned by DBDK Venture LLC, the creditor for a portfolio owned by a partnership that included Terravista Corp. Terravista filed for bankruptcy protection 14 months ago, intending to stop the lender’s foreclosure proceedings.

The San Antonio portfolio includes the following properties:

• Westwood Plaza at 2600 Westward Drive. The asset features 309 units in a mix of studios, one- and two-bedroom apartments ranging in size from 550 to 1,210 square feet. A Texas-shaped swimming pool is among the apartment community’s noteworthy amenities. Units feature ceiling fans and large balconies or patios. Westwood Plaza was built in 1960, and is close to Highway 90 and Interstate 410, providing access to restaurants, nightlife and shopping.
• Spanish Spur Apartments at 6835 Pecan Valley Drive. The160-unit apartment community features one- and two-bedroom apartments ranging in size from 650 to 1,080 square feet. Apartments feature high-speed Internet, air conditioning and heating. Built in 1974, Spanish Spur Apartments offers a swimming pool and is close to parks, restaurants and Interstate 37. 
• Villas of Pecan Manor is a 96-unit apartment community located at 6840 Pecan Valley Drive. The asset features one- and two-bedroom apartments ranging in size from 640 to 1,080 square feet. Apartments feature high-speed Internet access and tile floors. Constructed in 1976, Villas of Pecan Manor includes a clubhouse and is close to dining, shopping and parks.
• Roselawn Apartments at 3346 Roselawn Road is an 88-unit apartment community featuring one- and two-bedroom apartments ranging in size from 640 to 875 square feet. Apartments offer high-speed Internet access, air conditioning and ceiling fans. Completed in 1974, Roselawn Apartments features a pool and is situated near U.S. 90 and dining and shopping at South Park Mall.

San Antonio, the nation’s seventh-largest city, is facing a sizable economic shift that’s shaping the multifamily market. Despite the recent wave of completions, San Antonio’s average rent increased by 2.5 percent year-over-year through May—on par with the U.S. average and more than double the figure recorded at the same time last year, according to a recent Yardi Matrix report.