San Antonio Multifamily Investment Opportunities Increasing in Luxury Apartments

Best known for its rich history, San Antonio is an emerging economic powerhouse that investors have high hopes for in the future.

San Antonio is the seventh-largest city in the country and is home to five Fortune 500 companies: Tesoro, CST Brands, iHeartMedia, Valero Energy, and USAA.[1] The HEB grocery store chain, the 13th-largest private company in the United States, is headquartered in San Antonio, as well. The defense industry is also an important part of the city’s economy, as is tourism, with the Alamo UNESCO World Heritage Site and the city’s River Walk being major attractions.

San Antonio’s medical industry is thriving—spurred on by the new Brooke Army Medical Center, the largest military medical facility in the country. The city is also a leader in solar power production. Nationwide Insurance, JP Morgan, and Microsoft have all opened offices in San Antonio.

Luxury Leads the Way in San Antonio Multifamily Market

This new economic activity has led a growth spurt in San Antonio. The city had the third largest population increase in the country in 2016 at 24,473 people, according to the U.S. Census Bureau. It also saw 2.5% job growth in 2016.[2] Growth has been particularly impressive in the Downtown area, where 75% of the apartments have been delivered since 2010.[3] The Far West and Northwest regions are also seeing high activity.

Average rent in San Antonio was moderate at $916, up 2% year-over-year in October 2017.[4] The city’s economy is burgeoning, however, and luxury housing in San Antonio has taken off to new heights. At the beginning of 2017, a luxury unit in San Antonio rented for an average of $1.28 per square foot, $1.68 downtown.[5]

The multifamily real estate market in San Antonio is a blur of activity right now. More than 50 multifamily properties were sold in Bexar County in the first 3 quarters of 2017.[6]

San Antonio Multifamily Real Estate: Focus on Amenities

Amenities are becoming increasingly important as tenants have more luxury options to choose from. Typical local amenities include pools, fitness centers, and dog parks. We’re starting to see more apartments with specialty amenities such as automated package rooms, bicycle rentals, and larger activity spaces.[7] Communities with these types of features are more attractive to modern renters.

With further growth expected, the future looks optimistic for investing in San Antonio. As one executive for a local developer put it, “We’re just scratching the surface of what can happen in San Antonio over the next couple decades.”[8]

With six luxury multifamily properties in San Antonio, CWS Capital Partners is a city leader in investment and property management. We are experts in multifamily investing in San Antonio and can guide you through the process of acquiring, repositioning, developing, or exchanging property. To learn more about our investment properties, please visit our affiliated CWS Apartment Homes website. Contact us today to begin investing in multifamily real estate. To learn more about 1031 exchanges, be sure to read our white paper.

 

The information provided here is for your general informational purposes only. It should not be considered a recommendation or personalized advisory advice. CWS has made this third party information available from authors it believes are knowledgeable and reliable resources. However, its accuracy or completeness cannot be guaranteed and sentiment may change due to legal or economic conditions.

All investments involve risk including the possible loss of principal. You should familiarize yourself with all risks associated with any investment product before investing.

Advisory services are provided by CWS Capital Partners LLC, a registered investment advisor.

Securities offered by CWS Capital Partners LLC are through an affiliated entity, CWS Investments. CWS Investments is a registered Broker Dealer, member FINRA, SIPC.

 

[1] http://www.mysanantonio.com/business/local/article/Fortune-500-counts-five-San-Antonio-companies-on-6308083.php

[2] https://www.rentcafe.com/blog/rental-market/us-apartment-construction-at-a-20-year-high-in-2017/

[3] https://www.bisnow.com/austin-san-antonio/news/commercial-real-estate/sa-market-slow-steady-79560

[4] https://www.rentcafe.com/average-rent-market-trends/us/tx/bexar-county/san-antonio/

[5] http://www.mysanantonio.com/real-estate/article/Floodgate-apartments-promise-San-Antonio-luxury-12247732.php#item-38489

[6] http://www.mysanantonio.com/real-estate/article/New-York-firm-buys-51M-apartment-complex-near-12195818.php

[7] https://www.bisnow.com/austin-san-antonio/news/construction-development/multifamily-trends-79073

[8] https://www.bisnow.com/austin-san-antonio/news/multifamily/san-antonio-multifamily-is-on-the-rise-76567