Oxbow Development Group is moving forward with subsidies for a $129 million apartment project in San Antonio’s Pearl District.
The local developer received approval from Bexar County commissioners to negotiate $1.4 million in tax abatements to build 275 market-rate apartments at two sites: 102 East Josephine Street with 200 units and 1200 East Elmira Street with 75 units, the San Antonio Express News reported.
The developments are part of Oxbow’s strategy to expand the Pearl district across the San Antonio River, with plans for 700 apartments, a hotel, office space, retail and restaurants.
The tax abatement proposal was considered in the same meeting where commissioners were discussing the need for more affordable housing. It also follows a consultant’s recommendation that the city of San Antonio shouldn’t give subsidies to market-rate or luxury residential projects because they aren’t necessary to make those developments pencil.
The developer is asking for a 40 percent reduction in county taxes for up to 10 years. The subsidy would offset rising costs and financing challenges, said Omar Gonzalez, director of development at Oxbow, the real estate arm of Silver Ventures.
“Capital markets and construction costs have made residential development projects difficult,” Gonzalez said.
The project would require $10 million in infrastructure enhancements, including two bridges linking Pearl to Tobin Hill and planned upgrades to streets and sidewalks. The Midtown Tax Increment Reinvestment Zone would cover most of that, allocating $6.8 million.
The area already has a high demand for housing, with Oxbow’s nearby Southline Residences and Cellars at Pearl properties achieving occupancy rates of 95 percent and 97 percent, respectively.
Oxbow converted the historic Pearl brewery site into a mixed-use destination that generates about $10.6 million annually in property taxes, including $1.2 million for Bexar County, the outlet reported.
Commissioner Justin Rodriguez has suggested the county’s tax incentives would be better allocated to affordable housing in the future.
“We probably, moving forward, don’t need to incentivize market-rate,” he said.
— Andrew Terrell
Read more
Development
San Antonio
Oxbow eyes Southtown for next massive mixed-use project
Development
Texas
Oxbow seeks investors for first time amid Pearl District expansion
Development
Texas
Oxbow snags property near Pearl