Castle Lanterra Adds to TX Portfolio
- May 11, 2017
Castle Lanterra Properties has acquired Agave, a 349-unit Class A community near the CBD of San Antonio, from a joint venture between Greystar and The Carlyle Group.
The deal marks the company’s first acquisition in San Antonio.
“Agave is a trophy asset in a unique and irreplaceable location. San Antonio is a fundamentally sound market and is well positioned for continued growth,” Austin Alexander, Castle Lanterra Properties’ managing director, told MHN. “San Antonio also boasts a very diversified economy—healthcare, biomed, biotech, defense, energy, manufacturing, financial services, tech.”
Located at 633 S. Saint Mary’s St., on the San Antonio River Walk, the building was built last year and designed by Michael Hsu Office of Architecture.
At five stories, the building features a mix of studio, one- and two-bedroom units with 40 floor plans that range from a 547-square-foot studio to 1,299-square-foot two-bedroom design. Interior amenities include 10-foot ceilings, gourmet kitchens with Energy Star appliances, floor-to-ceiling windows, glass walk-in showers and oversized closets. All units are high-speed fiber optic wired and offer abundant storage space.
According to Alexander, the building’s community amenities are unmatched in the market. It has a clubhouse with resident lounge and entertainment space, media room, conference room, resort-class pool area featuring a palm-shaded courtyard with hammocks, outdoor kitchen and gaming area, access controlled multi-level covered garage, state-of-the-art fitness club outfitted with cardio and strength training equipment, as well as a yoga, Pilates and Barre studio.
The property also includes an eight-story concrete parking garage.
Agave is situated in the triangle of downtown San Antonio, Southtown and the King William Historic District, providing residents with walkable access to employment, retail, entertainment and outdoor recreational opportunities.
“Historically, CLP’s investment strategy focused more in secondary markets, older vintage assets, and a repositioning and value-add strategy. Agave, on the other hand, is a newly built property, has zero deferred maintenance issues, is located in a primary market, and is an A+ asset,” Alexander said. “It has become increasingly difficult to find compelling value-add opportunities at reasonable pricing. With Agave, the appeal is long-term controlled growth, attractive risk-adjusted returns, and the potential for substantial market appreciation due to its best-in-class location.”
Agave is also near Hemisfair Park, a 100-acre park that features multiple plazas, courtyards, green space, art and cultural amenities, and the property is also close to major highways such as I-10 and I-37. And it’s minutes from the University of Texas San Antonio’s downtown campus, as well as San Antonio College, the University of Incarnate Word and Trinity University.
According to the U.S. Census, San Antonio is the sixth-fastest growing metro in the United States in terms of job growth and rent growth is expected to grow 3.1 percent annually through 2020. Forbes recently ranked the city #12 for Best Cities for Jobs, and #8 for Next Big Boom Towns in the U.S.