A venture of Crow Holdings and the Preiss Company has offloaded a student housing complex in San Antonio amid subdued multifamily sales.
Austin-based investor Palladius Capital Management bought the Luxx, a 220-unit complex totaling 694 beds on the city’s Northwest Side, the San Antonio Business Journal reported. Newmark brokers facilitated the deal, and the terms were not disclosed.
The property, spanning 15 acres at 6023 UTSA Boulevard, is a stone’s throw from the University of Texas at San Antonio campus. Amenities include a pool and a two-story fitness center.
High interest rates have stymied multifamily transactions in San Antonio and elsewhere since last year. JLL reported a national multifamily trade volume of $300 million in the first quarter, down 65 percent from a year prior.
Of the few apartment properties to change hands this year in San Antonio, many have been driven by distress or impending loan maturities. For instance, the lender that foreclosed on the 285-unit Solara complex in November, previously owned by embattled syndicator GVA, bought it for $21.3 million, under $75,000 per unit, via auction in March.
Madera Residential also purchased a distressed apartment complex on the North Side earlier this year. The previous owner, Colorado-based DB Capital Management, defaulted on a $45 million variable interest rate loan.
While traditional apartment properties continue to struggle, student housing has emerged as a diamond in the rough in recent years.
“Student housing demand remains high, and UTSA offers strong growth prospects for future enrollment,” Ryan Lang, one of the Newmark representatives who brokered the sale, told the outlet.
Student housing properties have been highly sought after among investors and developers alike because they’re seen as reliable assets, relatively immune due to economic downfalls. So long as enrollment figures continue to grow at universities nationwide, demand is likely to remain strong.
—Quinn Donoghue
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