By Dees Stribling, Contributing Editor
San Antonio–Mid-America Apartment Communities Inc., a REIT specializing in apartments, has acquired a 340-unit apartment property, Alamo Ranch Apartments, in San Antonio. The development was completed in 2009 and is part of a mixed-use, master-planned community–formerly a working ranch– that also features 900,000 square feet of shopping, entertainment and dining anchored by J.C Penney and Lowe’s.
Alamo Ranch, which is currently 94 percent occupied, is a gated community with one-, two- and three-bedroom units. The units have open-design kitchens with granite countertops, nine-foot ceilings, and attached garages; the property features a pool, fitness center, club house and other amenities.
The acquisition, for an unspecified price, was funded by borrowings under the company’s existing credit facilities and by common stock issuance. Mid-America currently owns or has ownership interest in more than 46,600 apartment units throughout the warmer parts of the United States.
Alamo Ranch is the latest in a number of recent apartment purchases for the company. Among other properties it bought last year were a 208-unit complex in Raleigh, N.C. and a 336-unit apartment community in Smyrna, Tenn. The REIT has been buying both for its own balance sheet and in conjunction with Dallas-based Thackeray Partners.
Memphis-based Mid-America is particularly interested in San Antonio, as are a number of multifamily investors, for the area’s relatively strong economic fundamentals. As of November 2010, for instance, the San Antonio-New Braunfels area had an unemployment rate of 7.6 percent, compared with the national rate of 9.8 percent that month, according to the U.S. Bureau of Labor Statistics.
“We definitely like San Antonio and look to continue growing our presence in the market,” Al Campbell, Mid-America CFO, tells MHN. “The growth prospects for the next few years will likely make it a very competitive market for acquisitions, but our access to capital and ability to close quickly will hopefully provide us an important advantage over many competitors.”