Chicago-based Sherman Residential has returned to the San Antonio market with the purchase of the 308-unit Wiregrass at Stone Oak apartments, according to county deed records.
While no price was given, the buyer borrowed $26.9 million from Nationwide Life Insurance Co. to make the purchase, according to records. The property at 20303 Stone Oak Parkway was last assessed for $46.6 million by the Bexar County Appraisal District. The apartment complex was sold by its developer, Winter Park, Florida-based Epoch Residential. Will Balthrope, Drew Garza and Jordan Featherston of Institutional Property Advisors, a division of Marcus & Millichap (NYSE: MMI), represented the seller in procuring a buyer.
“The investment market in San Antonio is as strong as I’ve ever seen it,” said Balthrope, executive managing director at IPA. “Investors are finding good returns here, and after two moderate years, fundamentals have improved, which has helped propel investor interest.”
IPA hosted 18 tours of Wiregrass and received 12 offers for the property, Balthrope said.
Built in 2014, the property’s units average 893 square feet with average rents of $1,187 per month, or $1.33 per square foot, according to Austin Investor Interests LLC. This rent-per-square-foot ratio ranks the complex among the most expensive in Stone Oak.
Amenities at Wiregrass include a resort-style pool, state-of-the-art fitness center, resident lounge with business center, and a pet spa. All units include modern interior finishes with 9-foot ceilings, stainless steel appliances, faux wood flooring, granite countertops, tile backsplashes, modern cabinets, ceiling fans, washer and dryer units, and private balconies.
“The Stone Oak submarket has really picked up steam in 2019,” Garza said. “With the [Texas Highway] 281 expansion moving forward, people recognize that traffic flow will be getting a lot better. And with new employers like JPMorgan Chase, iHeartMedia Inc. and the Stone Oak Medical Center, employment continues to grow in the area, which helps drive people here.”
Sherman Residential entered the San Antonio apartment market in 2017 with the purchase of the 308-unit Axis at The Rim and the 384-unit Pecos Flats of the Far West Side. Both properties fit Sherman’s apparent investment model, which involves Class A, newly built apartments valued from $45 million to $50 million. Outside San Antonio, the company also owns four apartments in the Dallas area; two in the Austin area; two in Nashville, Tennessee; and one each in Charlotte and Raleigh, North Carolina.
With the sale, Epoch owns one Texas apartment complex in Spring, which is near Houston. It is unclear whether the company had developed in San Antonio prior to Wiregrass at Stone Oak. The rest of its portfolio consists of a dozen apartment complexes in Florida and Arizona.