Terravista Partners Sells 5-Asset Portfolio in Texas
The 844-unit portfolio will undergo renovations to the exterior, common areas and the units.
Terravista Partners has sold a portfolio of multifamily properties in San Antonio, Texas that it has a history with. The five communities that total 844 units were purchased by Pico Union Housing Corp.
A JLL Capital Markets team of Moses Siller and Zar Haro represented the seller and procured the buyer. JLL’s Anson Snyder from the debt placement team also arranged financing for Pico Union with an acquisition loan from Rialto Capital Management. Siller and Haro told Multi-Housing News that they were hired by the bankruptcy court to run both the restructuring/refinancing and the sale process of the portfolio.
“In the end, the sale prevailed as the best option and it was sold to a group who will maintain affordability in these trying times,” Siller and Haro told MHN. “It was a win-win for all parties and was the first bankruptcy we’ve personally completed where all parties were happy in the end.”
The portfolio includes the 120-unit Roselawn Apartments at 3346 Roselawn Road, the 160-unit Spanish Spur Apartments at 6835 Pecan Valley Drive, the 160-unit Villas of Pecan Manor at 6840 Pecan Valley Drive, the 308-unit Westwood Plaza Apartments at 2600 Westward Drive and the 96-unit Winston Square Apartments at 2506 General McMullen Drive. The portfolio’s units average 769 square feet and were constructed between 1960 and 1976.
According to JLL, part of the remaining proceeds from the acquisition loan will be used to renovate the properties. The renovations will include a new roof, exterior painting, resurfacing of the parking, building out the clubhouse for resident use, and improving the units with new vinyl floors, paint, energy efficient appliances and windows, according to Siller and Haro. They added that Pico Union will incorporate a resident services program that includes an after-school learning center, adult employment skills and children play areas.
TERRAVISTA’S HISTORY WITH THE PORTFOLIO
Terravista’s back-and-forth experience with these properties, excluding Winston Square Apartments, dates back several years. In October 2018, Terravista secured a $26.9 million refinancing package for the four-property portfolio.
The company later filed for bankruptcy in May 2019 to stop foreclosures on the properties, according to the San Antonio Express-News. The portfolio was later sold for $27 million to a joint venture between SKW Funding and Bain Capital Credit.
According to JLL, Winston Square Apartments joined the portfolio in an off-market offer prior to the bankruptcy sale that Siller and Haro worked on.