The Lynd Group and Declaration Partners acquired their first distressed multifamily asset since creating a programmatic investment partnership in July. Along with Corten Real Estate, they bought a newly constructed 260-unit Class A luxury apartment community Augusta
Lynd and Declaration serve as general partners and Corten Real Estate provided joint venture equity to finance the acquisition. Lynd acquired the asset through its investment and acquisition division Lynd Acquisitions Group (LAG).
“Augusta Flats is an incredible property in a thriving section of the city that we closed on at a discount,” said A. David Lynd, CEO of The Lynd Group, a family-owned real estate firm based in San Antonio since its beginning in 1980. “We paid $185,000 per unit and estimate it would cost $225,000 per unit if we were to build today. “It is a great opportunity for our investors and an ideal fit for our portfolio.”
Initially developed in 2021 and sold during lease-up, Augusta Flats is located at 714 McCullough Ave., near the bustling Downtown Riverwalk and Pearl entertainment and dining districts. Residents are within blocks of trendy clubs and breweries, chef-driven restaurants, high-end boutique shops, and major employers in the central business district.
Augusta Flats is a community of five-story buildings with studios, one-bedroom, and two-bedroom apartments with high-end finishes and spacious layouts. Curated amenities include a rooftop lounge with expansive cityscape views, a resort-style pool, cabanas with grilling stations, a 24-hour state-of-the-art fitness facility and a golf simulator.
Lynd has incorporated Augusta Flats into its industry-leading management platform, Lynd Living, which aims to create vibrant communities and personalized resident experiences. New additions will be signature Wellness, Home, and Pet Services, monthly events with a DJ, food truck gatherings, sound healing classes, educational workshops, and movie nights. With Augusta Flats, Lynd owns and manages approximately 1,500 units in greater San Antonio.
“Properties like Augusta Flats are the kind of deals in our sweet spot,” said Constantine Scurtis, Lynd’s Chief Investment Officer. “We are seeing a lot of distress in the multifamily market and feel like our partnership is ideally positioned to get a first look at some of these over-levered properties. We have the resources to close quickly and the operational experience to breathe new life into these assets.”
In July, Lynd and Declaration Partners, a private investment firm with offices in New York and Washington D.C., cemented a formal partnership to invest capital for workouts and distressed situations. The two are actively advising on several portfolios involving 23,000 multifamily units.
“Declaration is very pleased to close our first transaction together as general partners,” said Ron Dalal, a Partner with Declaration. “With Lynd’s operational expertise and insightful market knowledge, we anticipate this will be a very successful investment.”
“We are bullish on the San Antonio multifamily housing market and really excited to partner with Lynd and Declaration,” said Brandon Flury, a Principal at Corten. “The deal fits our special situations investment profile as well as our focus on multifamily assets that are well situated and serve a broad community of people. Corten looks forward to supporting the asset going forward and finding like opportunities with these exceptional operators.”
