Flagship Downtown Apartment Project Sells to Another Dallas Firm
Encore SoFlo marked a key shift in downtown residential development.
A major recent residential project near H-E-B LP’s downtown campus has a new owner, but both the buyer and the seller share a hometown. Dallas-based SPI Advisory LLC along with joint-venture partners acquired the 339-unit Encore SoFlo apartments at 326 S. Flores St. Dec. 17, according to a LinkedIn post from the firm.
The property holds an assessed value of $64 million, according to the Bexar County Appraisal District. Newmark Group Inc.’s Central
Texas team brokered the deal. Absorbing an entire city block, the apartments surround a pool and patios with fountains and relaxation areas. “The idea there was to provide an urban oasis where you can go after a hard day to your apartment and sit by the pool,” said Charlie Keels, president of multifamily for Encore.
As part of San Antonio’s Center City Housing Incentive Program, the $60 million project received approximately $6 million in municipal incentives in 2017. The incentive package included a 15year tax rebate, city fee waivers and San Antonio Water impact fee waivers to help minimize Encore’s financial risk of developing downtown. A similar development, the 341-unit Heritage Plaza by Austin-based Cypress Real Estate Advisors completed in 2020, sits directly east of the property along Dwyer Avenue. SPI Advisory said it has acquired 1,160 units over the last seven months. That includes the Southtown Flats apartment complex along Probandt Street and Birwood Heights, a property just north of Shavano Park. The firm, led by longtime commercial real estate banker Michael Becker, has offices in Dallas and Austin. SPI has $1.5 billion in assets under management totaling nearly 7,100 residential units throughout Texas, according to its website. Encore is now developing a five-story, 386-unit apartment complex along the Broadway corridor near Pearl, estimated to cost at least $90 million. San Antonio is one of the most popular markets with apartment investors this year, with a surge of interest in Texas markets for their stability coming out of the pandemic.
Published in Company News on 13 Dec 2023 at 14:11