Texas Apartments Change Hands
- Sep 26, 2017
RailField Realty Partners has acquired Cedars of San Marcos, a 168-unit Class B apartment community in San Marcos, Texas, within the Austin MSA.
“We liked the combination of the value add story and the strength of the submarket,” Jon Siegel, Railfield’s partner and chief investment officer, told MHN. “San Marcos is outperforming the rest of the Austin MSA and there is limited new construction there.”
The property offers one-, two- and three-bedroom units. Amenities at the property include a clubhouse with business center and coffee bar, fitness center, Wi-Fi in common areas, picnic/barbeque area, renovated swimming pool with sundeck, basketball court, sand volleyball court and covered parking.
Originally built in 1984, the property is situated off of Wonder World Drive, which runs into IH 35, and is adjacent to the 178-bed Central Texas Medical Center. The community is also conveniently located close by San Marcos Outlets, the largest outlet center in the U.S.; an Amazon distribution center with more than 1,000 employees; and Texas State University, with almost 38,000 students enrolled.
“We look for assets that offer a compelling value proposition that keeps us below the Class A assets in the market and are located in a submarket that is well anchored with employers and amenities,” Siegel said. “This checked all of the boxes given the value add story and the property’s location next to a medical center and close to a new Amazon distribution facility in addition to its proximity to Texas State and its nearly 40,000+ students and staff.”
Cedars of San Marcos has great access to employers and to all of the amenities of San Marcos including retail, the university and all of the popular outdoor destination with the San Marcos River offering tubing, canoeing, swimming and fishing.
According to Siegel, the company plans to spend approximately $2 million to make common area and unit upgrades that will significantly boost both the curb appeal and the resident experience.
“Cedars will benefit from our planned capital expenditures, which will help us provide a superior experience for our residents,” Siegel said.
RailField Realty has been active in the San Antonio-Austin market, acquiring more than 1,000 units over the last few years.