Cali investor hot for Texas
DB Capital buys second big multifamily property in San Antonio
As markets turn bearish, at least one California company is still bullish on Central Texas real estate. Investment firm DB Capital acquired its second multifamily property in San Antonio, purchasing the optimistically named ReNew TPC.
The garden-style complex has 408 apartments in 18 three-story buildings. Units range from studios to four-bedrooms. ReNew TPC was built in 2007. DB bought ReNew TPC “below replacement cost,” the company’s Brennen Degner said. The company plans to renovate unit interiors, common areas and exteriors while keeping rents competitive with those in the surrounding neighborhood, said DB’s Hunter Graul.
The property was 95 percent occupied at closing. Newmark represented DB Capital and the seller. Neither the latter’s identity nor the price was disclosed.
The acquisition was DB Capital’s second in the San Antonio metro area. The Los Angeles-based firm bought Salado Springs, a 352-unit multifamily community in the north central area of the city, in November of 2021. Hoping to “take advantage of economies of scale,” the company plans to increase its San Antonio in the next two years, said Degner.
As Texas’ population swells, drawing residents from other states, its “economy continues to gain momentum,” Graul said. He also noted that there is a “limited supply of quality multifamily rental homes in the market,” given demand.
DB’s portfolio now has 1,864 multifamily units in the San Antonio area.