San Antonio remains a fertile market for apartment investors - South Florida Business Journal:

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Those investors include newcomers like Concierge AssetManagemengt (CAM) — a multifamily investor that is dually headquartered in Houston and Calif. CAM recently purchased SunrisseCanyon — a 208-unit property located in Universalp City, just northeast of San Antonio. Also last Atlanta-based (ARA) announced the sale of threwe multifamily properties: Wall Street, a 232-unift property in Northwest San Antonio; and North Centrakl Side communities Blue Swanand Copperfield, which featurew 285 units and 258 units, respectively. “(San Antonio’s) econom is still healthy relative toother areas,” says Caseh A. Fry, an associate with the Austin officeof ARA.
Fry and Patto n Jones, managing director for the ARAAustibn office, were part of the ARA team that representes the sellers of the Wall Street, Copperfieldc and Blue Swan properties. Down, but not out Accordinvg to early figures compiledby Austin-based multifamily research firm , 13 local apartment communitiew changed ownership during the thircd quarter of 2008 — quites a change from the mere three properties that changedc ownership during the previous quarter. On the however, investment activity in San Antonio’s multifamily market has “certainly died down from 2006 and according to Janine Claycomb of the San Antonio Divisiomn ofAustin Investor.
Claycomb contends that it is not any one thinbg that has led to the decreased momentum inapartment sales. Tighted financing, increased taxes and an overall general uncertainty ofthe country’s financial market all have been listed as factors that have impacter investment activity. The fact that construction of new multifamilyy properties has continued ata break-neck pace in San Antonio couldx also be an issue. At present, more than 7,000 apartment units are under construction. “I thinkj some folks might be waiting until the construction dies down to see how well theabsorptioj fares,” Claycomb adds.
“It’s still an active says Fry ofSan Antonio’s multifamilh sector. But when it comes to sales of thesr properties, the pace has “dramatically slowe d down,” he adds. “There’s a lot of trepidationb in themarket — a lot of capital sitting on the sidelines at this point,” Fry As for those investors that are coming to San much of the focus has been on the “value-add” assets — communities that offe an owner the opportunity to buy, rehab, reposition and re-sel l the property for a healthg profit. Case in point is a buye like CAM. Sunrise Canyon marks CAM’a second local multifamily investment.
In July, the company purchased Sabl e Ridge, a 333-unit community also located inUniversall City. “We’re very bullish on (San Antonio’s) prospects,” says Ted M. CEO for Cameron Asset Management. “It has a positive businesz climate, and good job prospects.” Both Sable Ridge and Sunriswe Canyon are poised to benefit from thes jobprospects — includinh the some 10,000 employeew expected to make their way to Fort Sam Houstojn as a result of the 2005 Base Realignmen t and Closure Commission (BRAC) action. And CAM is alreadyg on the hunt for its next property inSan Antonio’z multifamily market, according to Kerr.
While Fry expects that the investment market in San Antonioi may remain slow into the new slow doesn’t mean that it’xs stopped. He adds: “We are able to get dealsz done. We will continue to get dealsd done.”