TODAY'S DEALS: USAA Real Estate Co., Cambridge JV Breaks Ground in San Antonio

The Residences at La Cantera.

San Antonio, Texas—A joint venture partnership comprised of USAA Real Estate Co. and Cambridge Development Group has broken ground on The Residences at La Cantera, a 323-unit Class A rental located in San Antonio, Texas. The project marks the third partnership with the two developers. The apartment asset is the first phase of the Town Center at La Cantera mixed-use development, which will include future phases of hotel, office, amenity retail and additional multifamily.

“We are pleased to partner with Cambridge in adding another component to the thriving La Cantera development,” says USAA Real Estate Co. chairman and CEO Pat Duncan. “The Residence’s proximity to world class shopping and dining along with top attractions and some of San Antonio’s major employers including USAA, Valero, The University of Texas at San Antonio and the South Texas Medical Center, makes it a premier location to live, work and play.”

The property will feature a mix of studio to three-bedroom floor plans ranging in size from 553 to 1,785 square feet. Amenities will include an internet café, a resort style pool and hot tub, a fitness center with separate yoga classroom, and a rooftop terrace with a fireplace and outdoor kitchen.

Beech Street closes $371M in conjunction with the recapitalization of 10 assets in Maryland

A Baltimore Asset

Baltimore—Beech Street Capital LLC has closed $371 million in Freddie Mac CME loans in conjunction with the recapitalization of 10 multifamily assets totaling 5,517 units in Baltimore County and Prince George’s County, Md. The transaction was originated by Meridian Capital Group, which was financed by Beech Street Capital as part of its correspondent relationship with Meridian.

Under the recapitalization, The Kushner Cos. acquired approximately 25 percent in the ownership group from a Rockpoint Group partnership, which retained the remaining interest. The new financing will be used to pay off the remaining existing debt and preferred equity, and to fund immediate cap ex reserves and budgets. The 10 assets will be managed by Westminster Management, an affiliate of The Kushner Cos.

All 10 loans are uncrossed, fixed-rate 10-year terms with partial interest-only. The properties consist of two- to four-story garden- and townhome-style buildings located primarily in the Baltimore MSA. One of the properties is in the Washington, D.C., MSA.

Three-property LIHTC portfolio sells for $31,741/unit

Reno, Nev.—The Tax Credit Group of Marcus & Millichap, the market leader in Section 42 property sales with over $3 billion closed, has arranged the sale of a three-property, 293-unit Section 42 Low Income Housing Tax Credit (LIHTC) portfolio in Reno, Nev. Combined, the properties encompass a total of 233,530 square feet. The $9.3 million sales price equates to $31,741 per unit and $40 per square foot.

Robert Sheppard, an executive vice president investments and national director of the Tax Credit Group of Marcus & Millichap; Kenneth Blomsterberg, a first vice president investments in Marcus & Millichap’s Sacramento office; and Armand Tiberio and Spencer Hurst, both senior directors of the Tax Credit Group, represented the seller and the buyer.

Blomsterberg was Marcus & Millichap’s broker of record in Nevada.

“The new owner has taken advantage of an excellent opportunity to acquire three well-maintained apartment communities in the growing Reno market,” says Sheppard. “The portfolio’s strong historical occupancy, combined with the submarket’s solid fundamentals, make Skyline, Skyview and Southridge attractive investments.”

“Both Skyline and Skyview were constructed in 1994 under the Section 42 LIHTC program and have extended use restrictions in place until December 31, 2023,” adds Blomsterberg. “Southridge was constructed in 1995 under the Section 42 LIHTC program and has extended use restrictions in place until December 31, 2045.”

All three properties are located on Sky Valley Drive on a hilltop in Reno with unobstructed views of the Sierra Nevada mountain range. Downtown Reno is minutes away and Interstate 80, U.S. Route 395, the Reno/Tahoe International Airport and public transportation are nearby.

The portfolio features 44 studios, 58 one-bedroom/one-bath units, 100 two-bedroom/one-bath units, 16 two-bedroom/two-bath apartments and 75 three-bedroom two-bath apartment homes.