Argosy Real Estate Partners Invests in Westover Hills Apartments
On June 15, 2017, Argosy Real Estate Partners, investing from Argosy Real Estate Partners IV, L.P. and its parallel funds, (together “Argosy”) acquired Westover Hills Apartments, a 276-unit, 1997-vintage, garden-style apartment community located in the Westover Hills submarket of San Antonio, Texas. The property was acquired at a favorable cost basis, below comparable trades in the market and at a significant discount to replacement cost.
Westover Hills Apartments is one of only 35 multifamily properties built in the San Antonio metro during the 1990s and is conveniently located near employment centers and major transportation corridors. The property features attractive floor plans with nine-foot or greater ceiling heights in all units but outdated interior finishes. The business plan is to complete capital improvements to enhance interiors, exteriors and common area amenities. The renovations will support top-line rent growth and meet the growing demand for improved rental product in the Westover Hills submarket. Post-renovation rents are anticipated to be in line with pricing currently being achieved at the property for units previously renovated by the seller.
San Antonio’s diverse economy, favorable business environment, relatively low cost of living compared to coastal cities, and appealing climate have made it the fastest growing of the 10 largest cities in the U.S since 2000. The region’s economy is well-diversified and has generally outperformed national averages over the past decade.
Westover Hills Apartments has been acquired in partnership with Avesta, a vertically-integrated multifamily owner/operator headquartered in Tampa with additional offices in Austin and Dallas. Avesta will provide construction and property management services. Since 2010, Avesta has acquired and managed over 12,000 units, including a portfolio of approximately 800 units in San Antonio, which is managed from the firm’s Austin office. Argosy previously partnered with Avesta on the Austin Multifamily Portfolio investment in AREP III.