anyone have multifamily experience in San Antonio?

Question

Looked at 3 properties in SA this weekend and really like the city. I got to meet and spend time with people very connected to the RE market and economy there, and I like what they were telling me. All the data sources say San Antonio is lagging DFW/Houston/Austin in occupancy, but in 2008/2009 they were still 91% occupied-- thats really strong. I've also spoken with several brokers, appraisers, PM's, and investors about cap rates, and they're pretty low for a city thats "lagging."

Anyone have long term ownership/investment in a MF there?

Juan Maldonado · Answer

@Tom Lafferty, we have been pretty active in SA over the last 10 months closing on about 350 units. give me a shout if you want to discuss.

@Nick B., thank you for keeping me in mind.

Juan Maldonado · Answer

look forward to talking @Tom Lafferty

Tom Lafferty · Answer

Great @Juan  Maldonado!  I'll send a colleague request....

Thanks @Nick B.!

Tom Lafferty · Answer

yep, ALN is one of the sources I've looked at.  Went to a presentation by Greg Willett with MPF,  and he made the same comment.  I talked to him after the meeting, and SA is supposedly the slow, steady, consistent one in TX.  While none of the TX markets got crushed in the 08/09 downturn, SA really did pretty well.

Chris Soignier · Answer

It's not a bad market, but the latest ALN Data reflects occupancy and effective annual rent growth lagging the DFW and Houston markets, which are where I'm concentrating my investments.    I wouldn't rule out SA, but it would be a relatively small investment primarily for diversification.

Nick B. · Answer

@Tom Lafferty, you may want to reach out to @Juan  Maldonado.

Kyle Jean · Answer

Ah I should have clarified, I haven't seen much new construction on the HUD side. For bank financing and Agency programs I'm sure there's quite a bit of activity. From what I remember the only potential concern some of our borrowers had was the relatively low barriers to entry in the market, but again this is mitigated if you can find a distressed asset.

Tom Lafferty · Answer

Thanks @Kyle Jean, I don't know if you've been recently, but there is PLENTY of new construction.  Its doesn't appear to be as bad as DFW, where you can't look in any direction without seeing new apartments going up, but I saw a lot of new properties.

Kyle Jean · Answer

We have looked at some large-scale commercial MF projects in that part of Texas over the past few years. None have qualified for our direct HUD programs and we haven't seen much new construction in general, but we have seen some individuals buy distressed assets around the $5M-$10M range, stabilize, and make a handsome return throughout Texas.

anyone have multifamily experience in San Antonio?

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