Dealmaker: Institutional Property Advisors Brokers 10 Multifamily Property Sales for $568M

Institutional Property Advisors, Ontario, Calif., closed 10 multifamily asset sales totaling 2,290 units in San Antonio, Texas. The sales totaled $568.45 million.

“Market conditions for investors in pursuit of Class A multifamily assets in San Antonio are stronger than ever,” said Will Balthrope, IPA Executive Director. “Household formation in the booming Interstate 35 corridor is lowering vacancy, while single-family home prices surge and the low inventory of homes for sale is boosting demand for top-quality apartments.”

Construction in metro San Antonio declined this year to its lowest level since 2012, demand grew faster than supply and availability decreased, all of which increased rent growth, the Marcus & Millichap San Antonio Metro Area Research report found. The area could see the strongest annual rent growth in at least 20 years due to the in-migration of nearly 30,000 new residents and the creation of 20,500 new households. Apartment vacancy could fall to 4.2 by year-end, the lowest figure since at least 2000, the report said.

Balthrope and IPA Director Drew Garza represented the sellers and procured the buyers, which included real estate investment and pension funds, developers, private investment companies and local and national investors.

Constructed between 2005 and 2020, the properties are located throughout the city. The sales took place between August 17 and November 2 and include The Mark Huebner Oaks, a 361-unit asset built in 2018, Celeste at La Cantera, a 300-unit property constructed in 2018 and Palmetto Pointe, a 328-unit property completed in 2021.