New York firm buys $51M apartment complex near Dominion
Published 6:27 pm, Wednesday, September 13, 2017
New York firm Bluerock Real Estate has stepped up its investment in San Antonio with the purchase of the $51 million Grand at the Dominion apartment complex on the far North Side.
The firm bought the 320-unit complex last week from Embrey Partners, the local development firm that constructed it in 2015, said Chris Fiscelli, Bluerock’s operations manager. The transaction comes a few months after Bluerock led a partnership that purchased three North Side complexes for a total of $115.8 million.
Bluerock believes that demand for new apartments will remain strong in the area around the Dominion and the Rim, despite the numerous apartment complexes have been built around there recently, Fiscelli said.
“Even though there’s a lot of new supply, there’s just tremendous growth and affluence,” he said. “Despite the competition, long-term we really like that demand story there.”
The firm purchased the apartment complex using a trust that is intended for investors participating in like-kind property exchanges, also known as 1031 exchanges, a form of property transaction allowed by the IRS that brings tax benefits, Fiscelli said.
He declined to share the purchase price for the complex, which was valued at $50.9 million this year by the Bexar Appraisal District.
Grand at the Dominion’s rents range from around $1,100 to $2,100 a month, with an average of $1,493 for all room types, Fiscelli said.
Earlier this week, another complex on the Interstate 10 corridor was purchased by an out-of-state investor. A partnership linked to the Electra America multifamily investment firm based in North Palm Beach, Florida, bought the Pecan Springs apartment complex near the crossing of I-10 and Loop 1604.
The purchase price was undisclosed, but the complex was assessed at $39.5 million this year by the Bexar Appraisal District. Representatives of Electra weren’t available for comment on Wednesday afternoon. The company already operates four complexes in San Antonio, according to its website.
San Antonio is one of Bluerock’s target markets, which include Austin, Dallas and Houston in Texas, as well as other Sun Belt cities such as Orlando, Florida; Charlotte, North Carolina; Atlanta; Jacksonville, Florida; and Nashville, Tennessee, according to Bluerock’s website.
San Antonio has been seeing an influx of out-of-state buyers acquiring local apartment complexes. More than 50 complexes have changed hands in Bexar County since the beginning of the year, property records show.