Wildhorn Capital Nabs 2 San Antonio Communities
- Oct 05, 2018
Wildhorn Capital LLC has acquired Bitterwood Ranch Apartments and Fifth Avenue Apartments in San Antonio.
Totaling 388 units, the communities are situated in the North Central district, north of I-410. This is a fast-growing enclave of San Antonio, noteworthy for its robust job growth and expansion of its shopping and restaurant scene.
“We were very fortunate in that these deals not only fit perfectly into Wildhorn’s ideal asset classification. But they were miles, if not blocks away from similar assets already in our portfolio,” managing partner Andrew Campbell told MHN.
“Since our business plan focuses on making improvements to the units and site, this took out what is usually one of our biggest challenges, accurately estimating renovation costs. One of the challenges around this portfolio acquisition was developing the legal entity structure to hold these assets. We ended up deciding to put both assets into the same partnership, while still ensuring they are owned as individual assets. This gives the management team the flexibility to sell one or both of the assets while still providing our LPs with the benefit of diversification in their investment.”
The two acquisitions mean Wildhorn Capital has acquired more than 830 units valued at more than $70 million in the San Antonio market during the last 12 months.
“I cannot emphasize enough how important it is to have a good team at your back,” Campbell said. “Multifamily is a team sport and you need to find others who can complement you where you lack knowledge or skill. Our legal counsel is like our star cornerback, he comes through and steps up his defense against anything that can go wrong right when we need it.”