Lynd Living scored a refinancing deal for an apartment building it just built in San Antonio, highlighting enduring interest from institutional capital in high-end multifamily.
Pearlmark provided the mezzanine loan for the Josephine Apartments, while Madison Realty Capital provided the senior loan, according to a release from Pearlmark. The amount of the loans and terms of the deal were not made public.
The Josephine, a 260-unit apartment complex at 210 West Josephine Street, is being leased up. The property features conference rooms, a library, rooftop pool deck and fitness center.
The property “is in high demand due to its luxury design and strong amenity offerings,” Pearlmark’s Steve Gordon said.
It’s within walking distance of San Antonio’s Pearl District, a 23-acre mixed-use area named for the historic Pearl Brewery.
Like other Texas metros, San Antonio’s multifamily market is plagued by oversupply, which has put a downward pressure on rents and occupancy levels.
Rents were down 1 percent year-over-year in the first quarter to $1,262 per month, while occupancy remained at 88.3 percent, according to a quarterly report from MMG Real Estate Advisors.
Bu, fresh financing for the Josephine proves that Class A apartment complexes in desirable submarkets are the bright spot in Texas multifamily markets.
Midtown San Antonio, which includes the Pearl District, commands the highest rents of any submarket in the city, with an average rate of $1,914 per month.
Lynd Living is based in San Antonio. It has completed $4 billion in multifamily transactions. The firm develops, acquires and manages apartment complexes in 10 states, according to its website.
The firm secured another refi deal earlier this year — a $58.75 million bridge loan from Ladder Capital for Potranco Commons, a recently completed 360-unit mixed-income apartment complex at 202 West Loop 1604 South on the city’s Far West Side.
Read more
Crickets chirping: Apartment development dries up in San Antonio
Pearlmark, OTH pick up apartments in expanding Pearl District
Small-town Seguin has too many apartments
