South Hill

A 174-Unit Value-Add Asset Minutes from Major Employment, Retail, and Entertainment

Deal Type: Acquisition

Risk Profiles: Value-Add

Property Types: Multifamily

Investment Highlights

  • Value-add opportunity located in south central San Antonio minutes from major employment, retail, and entertainment
  • Outstanding market fundamentals: South Central submarket rental rates grew by 11.9% in the past 12 months (Austin Investor Interest, 2Q22)
  • Limited supply: only two properties under construction within a four-mile radius of the property
  • Utility Billback Program: opportunity to implement a utility billback program to significantly increase income; assuming a 55% billback ratio and current utility expenses, a new owner could see $125k+ in additional annual income
  • Pet Rent Program: current ownership recently implemented a Pet Rent program that can add ±$20,000 to NOI at 25% program penetration
  • Tremendous Value-add opportunity; ability to renovate 89% of the unit interiors which are in classic/original condition
    • Current owner has invested significant capital at the property including:
      • Light upgrades (±$3,000 per unit) to 11% of the unit interiors, consisting of upgraded vinyl / Pergo flooring, two tone paint, and upgraded ceiling fans and blinds - achieving premiums of $100 per unit
      • Entire exterior paint including apartment doors/railings/fences, exterior lighting, repaving and restriping parking lot, landscaping, new exterior LED lighting, new signage, and updates to all three pools
    • Unit interiors are ripe for upgrades, opportunities include: continuing the current upgrades or take it to the next level with granite/quartz countertops, stainless steel appliances throughout, new white or grey cabinets, vinyl plank flooring throughout in remaining units, designer kitchen backsplashes, smart home tech package, framed mirrors, two-inch blinds, etc.
    • Additional upgrades include: a contemporary clubhouse remodel, package locker system, pool bungalow cabanas, repurpose tennis court, add dumpster enclosures, bark park, dog wash station, implement bulk cable package, add washer/dryer connections, etc.
    • Nearby comparable properties are achieving $225± more than South Hill – significant room for the new owner to grow rents


Investment Sales

Jim Young
Senior Managing Director

Chase Easley

Matt Michelson
Senior Managing Director

Patton Jones
Vice Chairman

Andrew Dickson
Managing Director

Debt & Structured Finance

Matt Greer
Vice Chairman

Andrew Wilson
Vice President