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

Contacts

Investment Sales

Jim Young
Senior Managing Director
512-637-1265

Chase Easley
Director
512-676-5529

Matt Michelson
Senior Managing Director
210-529-7266

Patton Jones
Vice Chairman
512-637-1213

Andrew Dickson
Managing Director
512-637-1237

Debt & Structured Finance

Matt Greer
Vice Chairman
512-637-1236

Andrew Wilson
Vice President
512-637-1268