June 14, 2021 9:00 AM
Newmark announces the sale of Preston Peak, a 596-unit, value-add multifamily asset located in northwest San Antonio in the South Texas Medical Center/USAA employment hub–the largest concentration of employment in the city. Constructed in 1995, the property sold for an undisclosed price and was 93 percent occupied at the time of sale.
Newmark Vice Chairman Patton Jones and Managing Director Matt Michelson represented the seller, Knightvest Capital, a Dallas-based private equity investment firm that specializes in repositioning multifamily assets. Preston Peak traded to a fund sponsored by CBRE Global Investors, a global real assets investment management firm with $124.5 billion in assets under management. Newmark previously sold the property in 2015.
“Value-add communities, like Preston Peak, in an ideal medical center location are attractive commodities in the San Antonio market,” said Jones. “The huge employment base and immense growth prospects of the South Texas Medical Center attracted private and institutional investors from across the country.” Michelson added, “Investors were drawn to the unique opportunity here in being able to establish a large footprint in San Antonio and gain economies of scale by acquiring 596 units in a single transaction, all while taking advantage of the city’s favorable market conditions.”
According to Newmark Research, capital sources have overwhelmingly invested in non-major markets, like San Antonio, with 79.8% of total capital allocation occurring outside the six largest markets in the first quarter of 2021. For over a decade, investors seeking growth have increasingly favored non-major markets, and the positive momentum and appeal for lower-cost markets accelerated during the COVID-19 pandemic.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.
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