We're excited to present our next deal in the best part of one of the top growth markets in the country - San Antonio, TX.
Huge management upside
Projected returns 11-13% COC and 16-19% IRR
Rents $400/mo below next level comps
Closing early September 2022
Best,
Robert
Marbach Park, San Antonio, TX
Did you know that San Antonio recently added more residents than any other city? That's right! San Antonio added more residents than any other city in the US from mid-2020 to mid-2021. 2022 hasn't shown signs of slowing down either. That's just one of the reasons why we love San Antonio. A few months back we broke ground on our 264-unit ground up development just six minutes down the road. This is a great area that is seeing a lot of growth because it's one of the last areas in San Antonio that is still "affordable" and has lots of rent upside.
Now we're going to be adding this new 304-unit stabilized value-add asset to the mix. With these two projects we'll have over 550 doors just minutes from each other. This offers a great span of control for property management and business plan execution. In addition to the great location, we were able to secure a $2MM price adjustment on top of the $3MM we had already secured initially. That's a 15% discount due to the Fed's increase in interest rates and this is why we believe this is a unique opportunity to find quality assets in great locations at a temporary discount due to current market conditions.
We will have the ability to refinance out of our acquisition loan quickly if rates drop. On the flip side we've secured 5 years and purchased a rate cap hedge so that our interest cost upside is limited/mitigated. We also stress tested this deal to ensure that, worst case, we can refinancing out at 8.5% interest down the road and still maintain our cash flow.
Live Webinar Replay
If you really want to dig into the details but didn't get a chance to see the live webinar, here's the replay.
Looking to find out more about this limited opportunity? Click the link here to view the entire deal packet.