Old Three Hundred, Pearlmark Buy San Antonio Value-Add Portfolio

Along with assuming an existing loan, the joint venture secured $11.5 million in preferred equity.
Parliament Bend

A joint venture between Old Three Hundred Capital and Pearlmark Real Estate has completed the acquisition of a 565-unit multifamily portfolio in North Central San Antonio. The ValCap Group sold the contiguous assets dubbed Park West and Parliament Bend.

Berkadia represented the seller, while JLL Capital Markets worked on behalf of the buyers to arrange $11.5 million in preferred equity from Brasa Capital Management. The new ownership also assumed the outstanding balance of an existing CMBS loan, Yardi Matrix data shows.

Located at 11838 Parliament St., the 232-unit Parliament Bend includes one- and two-bedroom apartments, as well as studios. Encompassing 327 apartments at 11845 West Ave., Park West’s unit mix incorporates similar floorplans. 

Rebrand and revamp

The partnership revealed rebranding and extensive renovation plans for the value-add properties, with nearly $4 million budgeted for the 1979-built Park West and more than $2 million intended for the 1982-built Parliament Bend.

Both properties feature on-site facilities including a gym, a swimming pool, laundry rooms, a playground, a basketball and volleyball court, a dog park and a barbecue area. Additionally, Park West features a business center and a TV lounge.

The communities have immediate access to the retail corridor on West Avenue, which is home to restaurants, cafes, fashion retailers and the Parliament Square II commercial center. Winston Churchill High School and an emergency clinic are also in the area. 

The Berkadia team that brokered the deal included Managing Director Mike Miller, Senior Director Will Caruth and Director Cody Courtney. The transaction marks The ValCap Group’s exit from the San Antonio market. The JLL Capital Markets team included Senior Directors Marko Kazanjian and Chris McColpin and Analyst Andrew Cohen.

As strong immigration pushes up the occupancy rate in stabilized properties, San Antonio is among the top Texas multifamily markets for development, according to an April ranking based on Yardi Matrix data. Strong multifamily fundamentals have placed the metro among larger markets such as Austin, Dallas-Fort Worth and Houston.