The last-minute commercial real estate deals keep coming in as the year winds to a close.
Pearlmark teamed up with OTH Capital to buy a San Antonio apartment complex near the popular Pearl District. The Chicago-based investor and the private equity firm based in Austin picked up the 228-unit 1800 Broadway. It’s the joint venture’s second acquisition.
The transaction was arranged by Institutional Property Advisors; Prime Finance provided the $31.8 million loan for the purchase, deed records show. It comes out to about $140,000 per unit. The sale price was not disclosed, but the property is valued at $41 million, according to appraisal district records.
The two-building property was built in 2013 and includes 1,500 square feet of fully leased retail space. The complex features a pool, fitness center, business center and dog park. The historic Pearl District is a mixed-use destination that was built at the site of an old brewery. Oxbow Development Group, a subsidiary of Silver Ventures, is planning an expansion of the district to include hundreds of apartments, a hotel and 70,000 square feet of retail.
Pearlmark closed its sixth mezzanine fund in November, according to a news release. The latest fund has more than $300 million in commitments, and loan sizes will likely range from $5 million to $50 million.
Industry experts are hopeful this week’s interest rate reduction will make financing more available for investment sales like these. Investors acting now have the ability to lock in low prices and secure assets ahead of the next rent price cycle.
Average monthly rent in San Antonio dropped 2 percent since last year, the San Antonio Report reported in October.
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