Newmark announces the sale of Magnolia Heights, a 149-unit, mid-rise, trophy multifamily property in Alamo Heights, Texas, a suburb of San Antonio. Newmark Vice Chairman Patton Jones and Managing Director Matt Michelson represented the seller, Cypress Real Estate Advisors (CREA), an institutional investment firm focusing on residential and mixed-use properties, in the sale to the buyer, a separate account fund managed by New York-based Clarion Partners. The property was 98 percent occupied at the time of sale.
“Magnolia Heights attracted institutions and private family offices seeking a trophy asset in the highly coveted City of Alamo Heights,” said Jones. “We continue to see top tier investors targeting core properties in supply constrained urban locations.”
Constructed in 2020, Magnolia Heights is a luxury multifamily community featuring a mix of studio and one-, two- and three-bedroom units and 5,162 square feet of ground-level retail space. Community amenities include a pool with sun deck and shaded poolside lounge seating, fire pit, outdoor grilling and dining areas, clubhouse, coffee and tea bar, conference room, state-of-the-art fitness center with on-demand classes, Dwelo smart home systems and an on-site community park.
Located at 5500 Broadway Street, Magnolia Heights is located within Alamo Heights along the Broadway Corridor, less than five miles north of downtown San Antonio. Alamo Heights is characterized by historic homes, tree-lined streets, premier schools and upscale dining and shopping. With proximity to city hotspots like the Pearl District and the Quarry, residents of Magnolia Heights are minutes from restaurants, bars, retail, grocery stores, salons and museums that line Broadway. The community is also a short drive to numerous retail and entertainment attractions in downtown San Antonio.
According to Newmark Research, Sunbelt markets such as San Antonio continue to drive the highest demand and garner the most attention from multifamily investors and developers. Year-to-date, approximately 3,800 new units have been added to the inventory, and over 10,250 units have been absorbed. Despite elevated supply, five-year forecasts show the market balancing as demand is likely to remain robust due to strong economic drivers, namely continued job and population growth.