January 3, 2022 10:00 AM
Newmark announces it has completed the sale of Encore SoFlo, a 339-unit, mid-rise, trophy multifamily community located at 326 South Flores Street in downtown San Antonio, Texas.
The property traded from Encore Multi-family, a vertically integrated commercial real estate investment company, to SPI Advisory, a Dallas-based private equity firm that focuses on multifamily real estate. The purchase of the property represents SPI Advisory’s fourth multifamily acquisition—a total of 1,160 units—in the San Antonio market since August 2021. Newmark Managing Director Matt Michelson and Vice Chairman Patton Jones represented the seller. Newmark Vice President Hank Glasgow and Senior Managing Director Braden Harmon of the firm’s Debt and Structured Finance group helped secure the acquisition financing on behalf of the buyer. The property was 92% occupied at the time of sale.
“Encore SoFlo was wildly popular with both institutional and private investors,” said Michelson. “The community’s downtown location steps from Southtown and the River Walk presented a rare opportunity to acquire a coveted piece of real estate in a walkable, 24-hour lifestyle hub. Its exceptional construction, resort-class amenities and contemporary design will make Encore SoFlo a mainstay in the market for years to come.”
Constructed in 2019, Encore SoFlo is a luxury multifamily community featuring a mix of studio, one- and two-bedroom units with an average unit size of 809 square feet. Unit interiors include 10- to 18-foot ceilings, faux wood flooring, designer carpet, stainless steel appliances, quartz countertops, pendant lighting, soaker tubs, oversized walk-in closets and washer/dryer sets in every unit. Community amenities include a rooftop lounge with sweeping downtown views; resort-style pool with the poolside bar; courtyards with firepit and grill area; fitness center; game room; dog run and clubhouse with media room, coffee bar, business center and conference room.
Encore SoFlo is centralized near the River Walk, steps from the heart of Southtown, the Historic King William District and San Pedro Creek Culture Park. Residents enjoy quick and convenient access to downtown San Antonio’s major employment centers and most exciting hot spots. The immediate area has transformed into a walkable, 24-hour lifestyle hub with new restaurants, retail, entertainment and recreation all within minutes of the community.
Sunbelt markets such as San Antonio continue to drive the highest demand and garner the most attention from multifamily investors and developers. Year-to-date, approximately 3,800 new units have been added to the inventory, and over 10,250 units have been absorbed. Despite elevated supply, five-year forecasts show the market balancing as demand is likely to remain strong due to positive economic drivers, namely continued job and population growth.
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 in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.