Lender · San Antonio, TX · Member since 2016 · 102 posts · 45 votes
Would like to get people familiar with the area's take on properties east of N New Braunfels Ave on the East side of San Antonio. Right now it is a rough area. With all the activity in Dignowity I was wondering if it is migrating east and at what pace?
I am asking because I have an opportunity to pick up a house in this area for what I think is a good price.
Real Estate Agent · San Antonio, TX · Member since 2014 · 311 posts · 176 votes
9y
@Mike Garland I'm a believer in the east side, I think it has tons of potential, but be weary of the announced projects. Lone Star is at a halt now and there are other small developments announced a few years ago that haven't gone through.
The Pearl is a beautifully executed mixed use development done by a billionaire. I think some people throw around "the next Pearl" loosely. I'm excited about everything downtown and San Antonio in general, just be weary of the announced projects headlines and the hype. Make sure it makes sense in the right now, future is icing on the cake.
Real Estate Investor · San Antonio, TX · Member since 2016 · 143 posts · 167 votes
9y
A lot of investors are looking at the East Side and Denver Heights as the next area marked for gentrification. A local developer, Efraim Varga, is supposed to be building a mixed use development just south of the Alamodome in Denver Heights. Google "Essex Modern City" for details and also "East Side Promise Zone". However, it seems the project is delayed and the developer has a reputation for hyping up projects and not actually following through. I've looked into Denver Heights myself but the area is still too rough for my tolerance...very high crime. But if you're willing to take the gamble, the returns could be huge if the development does happen. Imagine buying into Tobin Hill just before the Pearl happened!
Real Estate Agent · San Antonio, TX · Member since 2014 · 311 posts · 176 votes
9y
@Mike Garland I'm a believer in the east side, I think it has tons of potential, but be weary of the announced projects. Lone Star is at a halt now and there are other small developments announced a few years ago that haven't gone through.
The Pearl is a beautifully executed mixed use development done by a billionaire. I think some people throw around "the next Pearl" loosely. I'm excited about everything downtown and San Antonio in general, just be weary of the announced projects headlines and the hype. Make sure it makes sense in the right now, future is icing on the cake.
Real Estate Agent · San Antonio, TX · Member since 2014 · 311 posts · 176 votes
9y
@Ian R. have you looked at where the East Side Promise Zone money has gone? I haven't done a lot of research on it, but the news from last year, it didn't look like much was happening. I don't want to be Mr. Negative, it just seems a little over-hyped.
Real Estate Investor · San Antonio, TX · Member since 2016 · 143 posts · 167 votes
9y
Hey @Tim Macy , I totally agree with you. I saw the news on Lone Star today...very disappointing. I actually made a post about it earlier. And there was a lot hype about Essex Modern City and so far nothing. But I do also believe there is lots of potential in the East Side.
Investor · San Antonio, TX · Member since 2012 · 596 posts · 587 votes
9y
There's a new Council Person for District 2. I think we'll see a little better disbursement of both the Promise and Hub Zone funds.
To your original question, East of New Braunfels & North of MLK, I still wouldn't touch unless you're buying at $30k or under. Prices have gone up in this area. I just sold a real "beater" of a house for $45k in this same quadrant. Nevertheless, this area will never be "gentrified." It may get better, you may see some renovation, maybe even a couple notable projects, but it's always going to be a less than desirable neighborhood.
Conversely, South of MLK & East of NB is poised to make a comeback. Prices have already jumped for both sales and rental rates. Plenty of investors renovating houses and plenty of small-scale developers starting new projects. It's still block by block in this area, but if you can find a deal, I think the upside is there.
Lender · San Antonio, TX · Member since 2016 · 102 posts · 45 votes
9y
Thanks for the feedback. It is disappointing to see some of these larger projects running into slowdowns...
The Promise Zone monies seem more geared towards owner-operations vs investor projects. Would like to see more incentive for investors as they are the ones taking a large risk in the real properties of these areas.
I love Highland Park. Plenty of great housing stock, close to downtown, rapidly improving and appreciating consistently (but not too fast). Part of the neighborhood was proposed to become a historic district. The map was drawn and was on the Office of Historic Preservation's website. It looks like it may have fizzled and remains only as "eligible."
More info on Highland Park: http://www.sanantonio.gov/historic/historicsites/Surveys/Highland
what are your thoughts on this little area south of Iowa (DH) and between Hackberry and New Braunfels and at about Aransas? I've noticed the flippers are beginning to show up and also a barber shop and a new restaurant appeared on Aransas.
Investor · San Antonio, TX · Member since 2012 · 596 posts · 587 votes
9y
@Mike Krieg I think this is a good speculative area. I have sold a couple rentals and owner-finance type deals to clients in this area. I would be weary of overpaying, the area doesn't warrant it yet, but I do believe it is on the rise. No matter what your strategy, I'd pick a house with good bones, good curb appeal, and buy it "right priced." Do this and even if this pocket doesn't explode like some of the areas around it, you'll still have a solid investment.
Rental Property Investor · Las Vegas, NV · Member since 2016 · 83 posts · 98 votes
8y
This is an old news story (March 2017) but I just came across it, and it's pretty interesting. It seems that the "developer" behind the Essex Modern City project might actually be a flipper with grand ambitions but little if any development experience. I was optimistic on the project until I read this:
Investor · San Antonio, TX · Member since 2015 · 34 posts · 24 votes
8y
Hello @Heather H.@Ian R.@Tim Macy and others, I am the Managing Partner of Essex Modern City and would be more than happy to answer any questions about the project. In response to the East side investment if you have been following it over the last year or so the East side and near east side has seen the greatest appreciation in value of any area in SA. This is partly because it was at such a low basis but the East side is getting ready for a fantastic explosion of growth. Many other areas in San Antonio have historic overlays and slow down the development process.
Rental Property Investor · Las Vegas, NV · Member since 2016 · 83 posts · 98 votes
8y
Hi @Jake Harris, thanks for the shout out. I haven't seen any updates on the Essex Modern City development in a while - can you share its status? What are the main sources of the delays; do you expect to be able to resolve them, and do you have any idea of the new timeline?
I realize this is kind of a lot, and any information you can share would be appreciated (I am happy to chat on PM also, but asked publicly because I'm sure this info would interest others). Thanks!
Investor · San Antonio, TX · Member since 2015 · 34 posts · 24 votes
8y
@Heather H. I am not sure how familiar you are with large scale development projects they often take many years of planning before they come out of the ground. But, this project is a $200M development project and has several elements to it and we have been working diligently with world class architects and engineers. They have to design and plan for things 5-10 years in the future. As well as do things like soil engineering reports and archeologist studies.
Our biggest hold up has been the railroad Quiet zone it is a 12-24 month process and we are about 16months into that timeline. We are hopeful with working with city officials and the incentive package we will be able to solve many of these infrastructure issues like CPS energy, Federal Railroad Admin (quiet zone process) There was an article written recently.
We are looking to start moving dirt beginning in 2019 but, that is also depending on achieving things like the quiet zone (since we don't believe we can sell or rent residential units at the price we need with train horns sounding everyday). The city and everyone involved has been helpful and working towards achieving that but it has to still run through processes. Love to have to have you at one of the events and show you it in VR and share some of the other details we are working on and excited about.
Rental Property Investor · Las Vegas, NV · Member since 2016 · 83 posts · 98 votes
8y
@Jake Harris Thanks for the update and for sharing that information about the railroad quiet zone. Just a question on that - what will happen if it doesn't go through - would the project still be viable without the housing side of things? And the article says that it will cost up to a couple million per crossing - is that still within budget?
I realize that big development projects often face delays for good reason. But it is also not uncommon for them to become permanently stalled if they fall short on financing or face unanticipated additional cost or regulatory complexity.
Of course you are aware that Efraim Varga doesn't exactly have a reputation for finishing his projects, and this seems (according to the articles I've seen anyway) to be the biggest one he has tried, which is the source of a lot of people's caution, and why I asked the questions I did.
I think a lot of people here on BP would love to see Essex Modern City succeed. It will be exciting to see what happens to the site and the neighborhood throughout the process, and any updates you can provide along the way will be very helpful to all of us on this forum! And thanks for the invitation to come to one of the events - it will be great to check out sometime!
Investor · San Antonio, TX · Member since 2015 · 34 posts · 24 votes
8y
@Heather H. Efraim doesn't run this project even though he has some interest in Essex. He has completed other projects that we have partnered on which doesn't get press. So regardless of what articles might say his abilities don't factor into the success of this project.
If there is not quiet zone then no this project would not happen as planned. As it only works as a mixed-use site. But, the City, council members, TXDot, Union Pacific and every neighborhood association is working towards this happening. It is just a matter of time until it is achieved. We have purchased the property for cash 2 maybe 3 years ago and spent millions on plans and engineering. So without, sharing too much of the behind the scenes details this project will 100% happen. The cost for the improvements on the quiet zone range from 200k to $3M total. We are waiting for the engineering report which looks to be on the lower end of that budget.
We have a large construction company on board that has been helping with pricing (they are doing high-rise projects downtown and hundred of millions in work across the state). They are primed and ready for site work when we have these agreements in place with the city.
Rental Property Investor · Las Vegas, NV · Member since 2016 · 83 posts · 98 votes
8y
@Jake Harris Thanks for being so open and sharing such detailed information! I feel like this answers a lot of questions that many of us have been wondering about. Very best of luck, and I look forward to the future of this project!
Rental Property Investor · Las Vegas, NV · Member since 2016 · 83 posts · 98 votes
7y
@Ian R., @Seth Teel, @Tim Macy, your posts on the Eastside Promise neighborhood east of Dignowity from the beginning of this thread are really interesting and helpful.
Now that it's been a couple years, I'm just wondering if your opinions have changed at all? What do you think of the area east of New Braunfels and north of Houston now?
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
7y
Now here's my question.
With San Antonio neighborhood after neighborhood projected for gentrification.
Where are all of the violent criminal types going to go? Move into the newer construction areas using Section-8 and turn those areas of town into war zones?
Where will the violent people go? Is anyone projecting that (because you certainly don't want to invest there because prices and rents will go down quickly).
Obviously the Texas Prison system isn't going to become their new home, or it would already be their new home, and the area would be safe.
Also are there enough people in San Antonio (or wanting to move there) who have the income to continue to buy these gentrified houses in the projected areas (supply/demand), and who want to live in old refurbished neighborhoods vs the newer construction areas?
There has been a lot of great growth on the east side, but active listings in Dignowity Hill is up 40% from last year and inventory is at 7.3 months. The East Side was rapidly increasing in value as a result of the soaring prices in Dignowity, but it seems we'll likely have a correction in Dignowity which means increases in value on the East Side will probably slow down a little bit as well.
Rental Property Investor · Las Vegas, NV · Member since 2016 · 83 posts · 98 votes
7y
Thanks @Tim Macy! That's interesting that you're expecting cooling in Dignowity. Across the Eastside (including Denver Heights, Highland Park, etc.) do you expect downward price adjustments or just slowing growth?