Platte Canyon Capital made its first acquisition: an apartment complex owned by embattled real estate firm DJE Texas Management Group.
The Denver-based investor, which launched in January with a $30 million institutional commitment, bought the 268-unit Allure Apartments in San Antonio, according to a release. The price wasn’t disclosed.
Allure Apartments, at 7770 Pipers Lane, features 116 units built in 1984, and 152 units built in 2017. The asset sits on 11.5 acres in Westover Hills. Platte Canyon Capital plans to invest $4.7 million upgrading units, the exterior and amenities at the property.
DJE listed the property for sale this spring as part of an effort to liquidate its assets, the San Antonio Business Journal reported.
It bought Allure Apartments in 2019 and appears to have taken out two mortgages on it totaling $44 million. In May, there was more than $150,000 in liens on the property.
The FBI confirmed in June that it’s investigating founder Devin Elder for alleged money laundering and wire fraud. In addition, the U.S. Attorney’s Office for the Southern District of Texas filed a warrant to seize more than 1,000 acres of land tied to Elder.
In the midst of the federal investigation, Elder appears to have launched Ark40 Consulting, a firm named for Noah’s Ark that says it consults for nonprofits and small businesses.
San Antonio’s multifamily market is still stabilizing after nearly 10,000 new multifamily units were delivered last year. The city ranked 15th in the country for its apartment construction last year, RentCafe reported.
The increased supply has dampened rents, which were down 1 percent year-over-year in the first quarter to $1,262 per month, while occupancy held steady at 88.3 percent, according to a quarterly report from MMG Real Estate Advisors.
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