IPA Completes San Antonio Sale

IPA brokers a Texas sale; Steadfast Income REIT acquires a suburban Austin community for $18.4 million; and NorthMarq Capital arranges a $32.8 million, five-year, takeout loan with flexible prepayment requirements.

The Venetian

San Antonio—Institutional Property Investors, a multifamily brokerage arm of Marcus & Millichap, has brokered the sale of The Venetian, a 182,984-square-foot asset located in northwest San Antonio. The firm represented both the seller, a private syndicator from the Pacific Northwest, and the buyer, an individual investor from the Northeast. Terms of the transaction were not disclosed.

“The northwest quadrant of San Antonio is known for its high concentration of corporate employers, which provide a steady flow of potential renters and job opportunities,” says Drew Kile, an IPA associate director.

Located at 7771 Joe Newton St., the property is situated in a highly visible location just off Culebra Road. The Venetian features gated access, lighted tennis and basketball courts, two swimming pools, a 24-hour fitness center, billiard table, and a media lounge with a built-in kitchen.

Steadfast Income REIT acquires suburban Austin community for $18.4 million

Montela Apartments

Round Rock, Texas—Steadfast  Income REIT Inc. has completed the $18.4 million acquisition of Montelena Apartments, a 232-unit garden-style asset located in the Austin suburb of Round Rock. The transaction brings the REIT’s portfolio to 15 apartment communities with over 3,300 units in seven states.

“We are very pleased that our first Texas property is in Round Rock,” says Rodney Emery, chief executive officer and president of Steadfast. “The city’s unemployment rate is well below the national average, and the majority of residents hold white collar jobs that push the median household income to nearly $81,000, which is 48 percent higher than the national median.”

Montelena was completed in 1998 and consists of 10 three-story buildings situated on a 19-acre site. The property is 96 percent occupied with average in-place rents of $851. The amenity package includes a swimming pool with a heated spa, a fitness center, movie theater, playground, and volleyball courts.

NorthMarq arranges $32.8M, five-year, takeout loan with flexible prepay requirements

San Diego–Gardiner Champlin, Marty Meagher, and Erick Flyckt, senior vice presidents and managing directors of NorthMarq’s San Diego regional office, and Paul Fearey, vice president of NorthMarq’s Washington, D.C. regional office, cooperated to arrange first mortgage refinancing of $32.8 million for 2924 Clairmont Apartments, a 353-unit market-rate multifamily property located in Atlanta.

Financing was based on a five-year term with one-year interest only then a 30-year amortization schedule. NorthMarq arranged this financing for the borrower, Fairfield Clairmont I LLC, through its relationship with a life insurance company.

The application process for this permanent loan to pay off construction financing was started before stabilization and well before the agencies would quote the business. The low fixed-rate loan with prepay flexibility met the needs of the institutional borrower. “The lender did a great job of tailoring the loan terms to meet the unique requirements of this sophisticated borrower,” said Champlin.