Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., has acquired Lenox Overlook, a newly constructed 338-unit luxury apartment community in the North Central submarket of San Antonio, Texas from Oden Hughes. The firm will rebrand the community as TruNorth at Bulverde.
The purchase of this asset marks Passco’s fourth multifamily acquisition since September, adding 1,547 units to its portfolio in under four months. Within the same period, Passco sold three properties, bringing the firm’s number of multifamily dispositions in 2020 to four.
According to Gary Goodman, Senior Vice President of Acquisitions at Passco, the firm was attracted to TruNorth at Bulverde due to the San Antonio market’s exceptional fundamentals, including population growth that ranks second-highest in the nation, according U.S. Census Bureau data released earlier this year.
“San Antonio’s significant in-migration is only accelerating as more people are working from home and have flexibility to move out of major coastal cities in order to experience spacious units and top-tier amenities for a much more attractive price point,” explains Goodman. “Additionally, with 52 companies headquartered in the city, it is a thriving economy offering ample local employment.”
The property’s central location, adjacent to Loop 1604, offers residents prime accessibility to major employment, Goodman notes.
“San Antonio’s strong employment base has benefitted from a burgeoning healthcare presence, including Sonterra Medical Center, which encompasses three of the area’s top hospitals and is located just three miles from TruNorth at Bulverde,” says Goodman. “In addition, San Antonio is experiencing military realignment, an emerging energy sector, and a diversified manufacturing sector offering further attractive, high-earning employment opportunities.”
Goodman adds that the community is situated within a top-rated local school district and offers close proximity to attractive retail and recreation options, including H-E-B’s new 117,000 square foot Bulverde store and multiple golf courses, resorts, and parks.
“TruNorth at Bulverde leased up in just ten months, which speaks to the exceptional strength of the asset’s amenities and location,” Goodman continues. “We’re delighted to close out the year with the acquisition of this property, which offers an unmatched, high-quality living experience for San Antonio residents.”
Built in 2019, TruNorth at Bulverde consists of one-, two-, and three-bedroom apartments and townhomes averaging 861 square feet. Units consist of vinyl wood plank flooring, kitchens with stainless steel appliances, quartz countertops, gooseneck faucets, designer tile backsplash and contemporary lighting. All units are equipped with walk-in closets, private balconies or patios, and in-unit washer and dryers.
Community resort style amenities include a swimming pool with a sundeck, swim-up bar, cabana, fireplace, hammock garden, and grilling stations. Additionally, the property offers state-of-the art indoor and outdoor fitness centers, a dog park and wash station, an executive boardroom with a business center and library, and a clubhouse with billiards and large flat screen TVs, among other features.
Passco also owns Tribute at the Rim in San Antonio, Lakeview Villas in New Braunfels, and five additional properties throughout the state, bringing the firm’s total multifamily holdings in Texas to eight assets.
Goodman credits Passco’s industry reputation, strong capitalization, and long-term relationship with Newmark’s Patton Jones, who represented the firm in the transaction, as factors in winning and quickly closing this acquisition seamlessly.
According to Jones, “Lenox Overlook presented a unique opportunity to acquire a new, luxury community in an excellent suburban location surrounded by some of the most affluent demographics in the city. The property’s excellent build quality and its positioning near Class A retail and entertainment will ensure Lenox Overlook as a mainstay in the north central San Antonio submarket.”
TruNorth at Bulverde is located at 17715 Overlook Loop in San Antonio, Texas. Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.