FCP with joint venture partner, One Real Estate Investment (OREI) announce the acquisition of The Summit apartments, a 284-unit community in San Antonio, Texas. The Summit is a 1984-build, Class B multifamily property located at 1955 Larkspur Drive in the primary economic hub of San Antonio, proximate to the South Texas Medical Center, National Security Agency, Central Security Service Headquarters, Southwest Research Institute, USAA, University Health, and Valero, which combined employ over 140,000 people. The Summit was sourced through an off-market opportunity based on an existing relationship through a previous OREI asset transaction. Terms of the transaction were not disclosed.
The property benefits from convenient access to freeways I-410 and US-281, and close proximity to the San Antonio International Airport three miles away. The partnership will enhance the common areas and exteriors with a $5.1M renovation that will include adding exterior paint, resurfacing the pool, pressure cleaning, upgrades to the outdoor kitchen, renovations to the clubhouse, fitness center, landscaping, and enhanced signage amongst others. In addition to the exterior, interior value-add renovations will be implemented utilizing premiere upgrades including new flooring, granite countertops, backsplashes, light fixtures, cabinetry and stainless-steel appliances.
“FCP is excited to be working alongside an experienced San Antonio investor in OREI,” said FCP’s Cole Kellogg. “Our robust value-add investment into the community will improve the resident experience and bring the property in line with other top properties in the Castle Hills submarket.” The Summit is the 13th multifamily investment for FCP in Texas and the second in San Antonio.
“OREI’s historical performance in Texas has proven fruitful for our investors and we have continued confidence in the San Antonio market to sustain its trajectory of job, population, and rental growth,” said OREI President and CEO, Jeronimo Hirschfeld. “As The Summit marks our fourth investment in San Antonio, OREI will utilize the expertise and resources established in the market to implement our value-add program and drive returns.” In addition to acquiring The Summit, OREI has a Texas portfolio that includes 10 multifamily communities located in Houston, Dallas, College Station, San Antonio, and Austin, bringing total units under management in Texas to over 2,750.
FCP and OREI extend their appreciation to Will Caruth of Berkadia’s Capital Markets team for his representation of the seller.