Massive Capital has snatched an apartment complex on San Antonio’s Northeast Side.
The Houston-based firm purchased the 204-unit Horizon Apartments, a Class C property at 4848 Goldfield Drive, just north of the Interstate 35 and Loop 410 interchange, the San Antonio Business Journal reported.
Massive took out a $2.3 million loan to help fund the acquisition. Terms of the deal were not disclosed, but the property was valued at $14.5 million for tax purposes last year. The loan works out to $11,300 per unit. The previous ownership traces back to local investors William and Kelley Simmonds.
The complex caught Massive’s attention due to its assumable loan from Fannie Mae, which carries a 3.78 percent fixed rate and a 2032 maturity date. Assumable loans have been particularly attractive to investors given the high-interest rate environment and tough lending standards.
The recent investment is grounded in Massive’s vision for value-add upgrades and potential rent growth in the bustling San Antonio market. The firm spotted the demand for workforce housing in the area and cited the property’s promising prospects for enhancement, in communication with investors.
Massive aims to retain ownership of the Horizon for the next five years.
A slew of multifamily players have targeted San Antonio assets in recent years due to the city’s demographic shifts, job market vitality, and population growth. Notably, areas like Stone Oak, the Northeast Side, and Westover Hills have been hotspots for investment, the outlet said.
Other San Antonio apartment deals since last year include Lynd Living’s purchase of the 288-unit Republic Woodlake on the Northeast Side, and Kairoi Residential’s acquisition of the 612-unit Signature Ridge apartments in San Antonio’s Medical Center.
It hasn’t been all rainbows and sunshine for the Alamo City, though, with multifamily distress rearing its head. Two apartment complexes in the city went into foreclosure last month, and Austin-based GVA is facing foreclosure on several properties in the city as well.