February 15, 2023 12:00 PM
Newmark announces it has facilitated the sale and financing of a three-property multifamily portfolio totaling 828 units in San Antonio, Texas. Newmark Senior Managing Director Matt Michelson represented the sellers, Texas-based Multifamily Acquisition Advisors and Irvine, California-based Blackhawk Property Holdings, in the transaction to the buyer, affiliates of Harbor Group International, LLC (“HGI”). The assets sold for an undisclosed price. Newmark Executive Managing Directors Henry Stimler, William Weber and Matt Mense, Senior Managing Director Ari Schwartzbard and Vice President Daniel Sarsfield facilitated a loan on behalf of HGI, secured through Freddie Mac.
“This portfolio provided investors the opportunity to acquire a sizeable footprint across multiple San Antonio submarkets, accessing economies of scale,” said Michelson. “These properties were sought-after by institutional and private investors attracted to the value-add opportunity at the property level and exceptional San Antonio growth metrics.”
“We were able to execute Freddie Mac financing with excellent terms on behalf of HGI for the portfolio purchase. Even amidst market uncertainty, Freddie Mac remains a steadfast lending partner when it comes to good real estate alongside top-tier sponsors,” noted Stimler.
The portfolio spans from North Central to West San Antonio and includes three garden-style properties: Spice Creek, located at 8802 Cinnamon Creek Drive; the Clara, located at 10707 West IH-10 and the Maxwell, located at 1431 Cable Ranch Road. The properties offer spacious one- and two-bedroom floorplans with fully equipped kitchens, oversized walk-in closets and private patios/balconies in select units. The properties’ community amenities feature resort-style pools, outdoor picnic areas with grills, clubhouses and fitness centers.
The properties provide access to San Antonio’s major employment centers, including Westover Hills—one of the city’s largest employment districts comprising Microsoft, Wells Fargo, Citicorp and Nationwide—and the South Texas Medical Center, a 900+ acre medical development supporting 58,730 jobs. Additionally, the portfolio is surrounded by many premier retail and entertainment destinations, including The Shops at La Cantera, The RIM, Alamo Ranch and Culebra Market.
According to Newmark Research, investor confidence in the multifamily sector remained strong in the fourth quarter. Though rent increases are expected to continue to moderate nationally, multifamily demand remains robust. Demand is the primary driver of increasing rent, fueled by the migration of renters from higher-priced metro areas to more affordable Sunbelt cities, such as San Antonio. In the last 24 months, San Antonio’s average effective rent has increased by 15.9%, while occupancy rates remained stable at over 90%.
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately $20 billion, including 58,000 apartment units in the United States and 5.0 million square feet of commercial space throughout the United States and the United Kingdom. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $3.1 billion for the twelve months ending September 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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