Koontz Plans Apartment Project in Oversupplied San Antonio

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Koontz Corporation is pushing ahead with an apartment development in North San Antonio, betting that high-end retail, affluent neighbors and future road upgrades will offset softness in the multifamily market.

The local developer plans to build 305 units in a development called the Elle Apartment Homes, slated for a nearly 10-acre site at Loop 1604 and Blanco Springs Road, the Austin Business Journal reported. 

Koontz acquired the land in February from IBC Bank for an undisclosed sum. Construction is expected to begin in the third quarter, with completion targeted for June 2027. Garcia + Associates Architect and Casey Roy Design are leading design work for the complex.

The market has struggled recently with oversupply and slower lease-ups, but Koontz is banking on future infrastructure improvements and the area’s proximity to major commercial corridors to support demand. The site sits near high-income neighborhoods and retail hubs, like The Rim and Stone Oak.

It’s also adjacent to a stretch of Loop 1604 where roughly $300 million in improvements are expected to ease congestion and improve access. That roadwork is slated to wrap around the same time the apartments are delivered.

The Elle joins several other upscale apartment projects in North San Antonio, where developers have remained relatively active even as high interest rates and rising construction costs have sidelined other projects across the metro. Some active projects include Woodbranch Management’s recently approved plan to convert its office building into apartments near Balcones Heights.

This year is shaping up to be a quiet one for apartment deliveries across the region. Apartment starts dropped 80 percent last year in the San Antonio metro area, with only 1,874 units starting construction compared to 9,526 units in 2023, according to MMG Real Estate Advisors. Projects like The Elle reflect longer-term bets that today’s slower pipeline could give way to a more balanced market by the time these units hit. 

Koontz, like other developers, appears to be positioning for a market where delayed supply and continued job and population growth could improve fundamentals over the next few years.

— Judah Duke

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