Investor Snaps Up San Antonio Apartment Property

The Palomino, a 484-unit multifamily complex in San Antonio, has traded hands for an undisclosed price.

San Antonio—The Palomino, a 484-unit multifamily complex in San Antonio, has traded hands for an undisclosed price. Originally developed in 2009, the first phase of the property included 348 units, while the second phase came online in 2012 and includes 136 units.

Will Balthrope, Scott Lamontagne and Drew Kile of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller in the deal, Koontz McCombs Development. Balthrope and Lamontagne also secured the buyer, an investment group represented by Francis Property Management Inc. of Beverly Hills, Calif.

At the time of the sale, the Palomino was 95 percent occupied. According to Balthrope, the 19.1-acre Palomino property benefits from its location just south of the intersection of I-10 and Loop 1604, two highly trafficked highways. Also located at this intersection are newer retail and entertainment venues, including the Shops at La Cantera, a 1.3 million-square feet open air center; the Rim, a 1.5 million-square foot mixed-use asset; Westin La Cantera Resort; and Six Flags Fiesta Texas.

Balthrope adds that the sale is the “largest single-asset multifamily sale in terms of units” so far in San Antonio this year. “This transaction demonstrates the strength of the San Antonio multifamily investment market.”

Indeed, in 2012 Marcus & Millichap reports that some 2,800 new apartment units will come on line in greater San Antonio, but vacancies will nevertheless be down 70 basis points for the year to 6.4 percent, the lowest since before the recession. Investment transition volume has increased more than 10 percent in the last 12 months, with buyers especially interested in the 100- to 200-unit and 300-plus unit segments.