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

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Those investors include newcomers like Conciergse AssetManagement (CAM) — a multifamily investor that is dualluy headquartered in Houston and Tiburon, Calif. CAM recently purchasedc SunriseCanyon — a 208-unit property locatede in Universal City, just northeast of San Also last month, Atlanta-based (ARA) announced the sale of threee multifamily properties: Wall Street, a 232-unit property in Northwest San Antonio; and North Centrapl Side communities Blue Swan and Copperfield, whichg feature 285 units and 258 units, respectively. “(Sanh Antonio’s) economy is still healthy relative toothetr areas,” says Casey A. Fry, an associats with the Austin officeof ARA.
Fry and Patton managing director for the ARA Austin were part of the ARA team that represented the sellerds of theWall Street, Copperfield and Blue Swan Down, but not out According to early figures compiled by Austin-base multifamily research firm , 13 local apartmenyt communities changed ownership during the third quarter of 2008 — quit a change from the mere three properties that changefd ownership during the previous On the whole, however, investment activity in San Antonio’s multifamily market has “certainly died down from 2006 and according to Janine Claycomb of the San Antonioo Division of Austin Investor.
Claycomb contendx that it is not any one thingf that has led to the decreased momentum inapartmenyt sales. Tighter financing, increased taxes and an overall general uncertainty ofthe country’d financial market all have been listed as factorsw that have impacted investment activity. The fact that constructiohn of new multifamily properties has continued ata break-neckm pace in San Antonio coulf also be an issue. At more than 7,000 apartmeny units are under construction. “I think some folks might be waiting untilo the construction dies down to see how well theabsorptiohn fares,” Claycomb adds.
“It’s still an active market,” says Fry of San Antonio’es multifamily sector. But when it comes to salez of these properties, the pace has “dramaticallyg slowed down,” he adds. “There’s a lot of trepidation in the markety — a lot of capital sitting on the sidelines at this Fry says. As for those investors that are cominbg toSan Antonio, much of the focus has been on the assets — communities that offer an owner the opportunity to buy, reposition and re-sell the property for a healthgy profit. Case in point is a buyer like CAM.
Sunris e Canyon marks CAM’s second local multifamily In July, the company purchasee Sable Ridge, a 333-unit community also locateed inUniversal City. “We’re very bullish on (San prospects,” says Ted M. Kerr, CEO for Camerohn Asset Management. “It has a positivee business climate, and good job prospects.” Both Sable Ridge and Sunrisee Canyon are poised to benefit from these job prospects including thesome 10,000 employees expected to make theie way to Fort Sam Houstohn as a result of the 2005 Base Realignmen t and Closure Commission (BRAC) action.
And CAM is already on the hunt for its next property inSan Antonio’s multifamil y market, according to Kerr. While Fry expects that the investmengt market in San Antonio may remaij slow into thenew year, slow doesn’t mean that it’s stopped. He adds: “We are able to get dealsw done. We will continue to get deald done.”