DB Capital Management has acquired Villas of Henderson Pass, a 228-unit multifamily property in San Antonio, in a partnership with Sabal Financial Group.
Villas of Henderson Pass last traded in 2016, when 37th Parallel Properties bought the community from Resource Capital, according to Yardi Matrix data. The transaction marks DB Capital’s third multifamily acquisition in San Antonio.
Located at 16465 Henderson Pass and built in 1986, the property features 20 two and three-story buildings on a 9-acre lot, with a mix of one- and two-bedroom units between 550 square feet and 927 square feet. Common-area amenities include a fitness center, business center, clubhouse, volleyball and basketball court, two swimming pools and 416 parking spots.
The property is situated 8 miles from San Antonio International Airport and 14 miles from University Hospital and downtown San Antonio. The community is also close to major employers, such as South Texas Medical Office, Valero and Oracle America.
A New Value-Add Play
DB Capital is planning to rebrand the property as Summit Henderson Pass. The community will undergo a $4.5 million renovation program that will include in-unit upgrades with in-unit washers and dryers, smart home technology and new flooring. The refurbishment plan also calls for exterior and common-area improvements.
DB Capital CEO Brennen Degner said, in a prepared statement, that the garden-style asset was acquired at a below replacement cost and that the renovation will enhance the property, placing it in a good position to compete with other value-add projects in the area. The asset was 98 percent occupied at the time of sale, according to the company.
DB Capital entered the San Antonio market last November, with the acquisition of Salado Springs, a 352-unit multifamily property located in Alamo City. ReNew Tpc marked the company’s second purchase in the metro. The 408-unit community traded in June.
According to a recent Yardi Matrix Report, San Antonio posts healthy multifamily market fundamentals. The metro’s unemployment rate improved to 4.2 percent as of February, almost on par with Dallas-Fort Worth. Developers delivered 860 units in the first quarter of the year and investors traded $518 million in multifamily assets, for an average price per unit of $119,395.