Private equity firms Cottonwood Group and Texsun Holdings have gone in on a sizable chunk of San Antonio real estate. The companies just bought a 636-unit multifamily portfolio comprising two properties in the Central Texas city.
The San Mateo Apartments, at 3787 Perrin Central Boulevard, and Heights on Perrin Apartments, at 555 NE Interstate 410 Loop, are located three miles from each other in San Antonio’s northeast submarket.
Cottonwood and Texsun plan a $7 million renovation on the two properties, which Austin-based ResProp will manage. The acquisition is Texsun’s eighth in the IH-35 corridor between Dallas and San Antonio.
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While some investors have been unloading their Sun Belt portfolios — notably New York’s Gaia Real Estate, which cashed in its portfolio this spring — several others have stepped up with big acquisitions.
DJE Texas Management Group bought three San Antonio multifamily properties with a total of 600 units in June. California’s Tides Equities, on an investing tear across the Sun Belt, just closed on a $70 million deal for a 34-building apartment complex in Austin.
Would-be homebuyers in nearby Austin, meanwhile, have been increasingly priced out of that market and are migrating southwest to cities such as San Marcos and San Antonio in search of more affordable housing.