NAPA Ventures Sells San Antonio Asset
- Dec 04, 2017
NAPA Ventures has disposed of Morgan Manor, a 157-unit community in San Antonio. Stylis Real Estate acquired the asset and assumed the outstanding balance of a 10-year, $5.6 million loan, held by Fannie Mae, which bears interest at a rate of 4.7 percent per annum, according to Yardi Matrix.
Built in 1963, the 16-building property is situated on almost eight acres at 7135 Oaklawn Drive in the Oak Hills Country Club submarket. The unit mix consists of efficiency and one- to three-bedroom floorplans ranging from 482 to 1,205 square feet. Common area amenities include a tennis court, playground, two laundry facilities and 268 parking spaces. Units feature semi-private entries and private balconies/patios.
Glenn Gonzales, co-founder of NAPA Ventures, said the Class C property was under great distress under the previous ownership, with some of the units ‘down’ and not habitable. Furthermore, the occupancy rate was at 50 percent, well below the industry accepted 95 percent. NAPA’s business plan going into the initial investment was to renovate the exterior of buildings and interior units to increase profitability and provide an improved living experience for the residents. These updates included a makeover of landscaping, parking lots, exterior paint and exterior lighting. Interior unit renovations included upgrades to countertops, cabinets, floors and appliances.
“As simple as it sounds we executed our plan and sold the asset,” said Gonzales, in prepared remarks. “When we bought the property we honestly wondered, ‘can we pull this deal off?'”
Image courtesy of Yardi Matrix