While Class C multifamily deal flow has slowed tremendously in recent months, a different type of apartment building has been selling, and a Texas developer is jumping in the fray.
San Antonio-based Vantage Communities is evaluating options to sell four apartment complexes across Texas, according to a filing with the Securities and Exchange Commission by apartment investor Greystone.
One property, Vantage at Tomball, lies in a suburb of Houston. Two, Vantage at Fair Oaks and Vantage at Helotes, lie northwest of San Antonio, and the fourth, Vantage at Hutto, is north of Austin.
Greystone’s investments in the four properties were worth $57.4 million at the end of June, but the size of its stakes relative to the overall values of the properties is unclear. It is a noncontrolling equity investor in a slew of Vantage developments.
The Tomball, Fair Oaks and Helotes developments are all about 90 percent occupied, while the Hutto complex is 80 percent full. They were built between April 2022 and December 2023, part of a recent surge in new developments to hit the market in Texas Triangle cities in recent years and upended market dynamics.
That increase in supply has made it harder to lease up and command high rents. While there has not yet been much in the way of distress for newly built apartments, there has been an uptick in sales as investors with patient money can afford to wait out what is expected to be just a temporary decrease in rents.
Read more
Commercial
Fort Worth
Gold Creek lands $75M refi for “green” apartments amid tight lending
Residential
Dallas
Greystone lends $15M for five multifamily assets in North Texas
Commercial
San Francisco
Latest Veritas SF portfolio up for sale tied to $291M Greystone loan
There has been more distress on Class C value-add deals, which changed hands at a rapid pace before interest rate hikes made it harder for those investors to obtain the debt they needed to renovate and raise rents. Syndicators in particular have run into trouble, with foreclosures and forced sales happening across Texas.
Greystone has been an active apartment lender this year, striking deals in Texas and across the country.