Aragon Holdings Purchases Sixth San Antonio Property
- Oct 08, 2012
San Antonio—Carmel at Deerfield, a 228-unit Class-B multifamily rental property in San Antonio, has been purchased by Aragon Holdings. Built in 1985 and located in the city’s upscale north central area near many of San Antonio’s largest employers, Carmel at Deerfield is 99 percent occupied at present.
Carmel at Deerfield’s apartments feature private patios or balconies, large walk-in closets, well-appointed kitchens, ceramic tile bathrooms, wiring for intrusion alarms and fireplaces and built-in bookshelves in some apartments. Among the community’s common-area amenities are a clubhouse, fitness center, swimming pool and spa, business center, tennis court and basketball court.
San Antonio is the seventh largest city in the country and second largest in Texas. That size helps make it among the strongest multifamily rental markets in the nation, according to Larry Clark, president of the Aragon Holdings, a Beverly Hills, Calif.-based real estate investment and fund management company.
Due to a diversified employer base, the city has regained all jobs it lost during the recession. The employer base in San Antonio includes five Fortune 500 companies, the tourism industry, educational centers, medical facilities and international trade.
Within a three-mile radius of Carmel at Deerfield, the population has grown by 34 percent over 12 years, Clark says. Moreover, it is projected to grow another 11 percent in the next five years. Average household income in this area of San Antonio is $93,000, as opposed to $63,000 for the metro area as a whole.
The apartment community is located near Silver Horn Golf Club and The Club at Sonterra Golf Course, and two large San Antonio Parks, Phil Hardberger Park and McAllister Park. It is also conveniently located a short drive northwest of San Antonio International Airport.
Carmel at Deerfield represents the 16th acquisition by Aragon Holdings in the last four years, a period that has witnessed the company purchasing more than 4,000 apartment units across the country. In just the past six months, Aragon has bought more than $100 million worth of multifamily assets in four Sunbelt states.
The company is actively seeking to purchase additional multifamily properties in cities nationwide that show positive employment and population growth.
Equity for the Carmel at Deerfield transaction was provided by the Aragon Multi-Family Cash Flow Fund, a private equity fund formed to facilitate the company’s acquisition activity and monthly cash flow distributions to investors. Details of the transaction, including purchase price, were not disclosed.