Northmarq brokers sale of Regatta Apartment Homes in San Antonio, TX

SAN ANTONIO (April 25, 2024) — Northmarq’s San Antonio Multifamily Investment Sales team led by Zar Haro, Moses Siller, Bryan VanCura, Phil Grafe, Brian Booth, Rudy Dodier and Kevin Garza successfully facilitated the sale of Regatta Apartment Homes, a 200-unit multifamily community strategically located at 12635 Scarsdale St. in San Antonio, Texas. The property was acquired by an entity controlled by CREE Capital. Cheryl Higley of Northmarq represented CREE Capital on the loan assumption advisory services. This transaction represents a significant achievement in a challenging capital market environment.

What distinguished this sale was the innovative financing structure, wherein the buyer assumed the existing loan, making the project notably appealing to investors amidst turbulent financial conditions. "The strategic loan assumption significantly enhanced the attractiveness of the investment, particularly in a difficult capital market environment," noted Haro.

In this transaction, Bluebonnet Asset Management, an Austin-based owner with over a decade of experience in the Austin/San Antonio market, served as the seller. Notably, this marks the fourth trusted assignment representing Bluebonnet in collaboration with Northmarq, underscoring their longstanding partnership and mutual success.

CREE Capital, the purchaser, has ambitious plans for Regatta Apartment Homes, intending to undertake on an extensive renovation program to enhance both amenities and the community center. This strategic vision aims to elevate the living experience for residents and further solidify the property's position in the market.

"The loan assumption process has become more challenging in this market,” said Higley. “Lenders are requiring stricter terms, including escrow reserves for repairs and future interest payments, even for acquisitions with low leverage.”

Constructed in 1982, Regatta Apartment Homes is comprised of 10 two-story buildings nestled in the picturesque Northern Hills neighborhood of northeastern San Antonio. Boasting proximity to Northern Hills Lake and North Hills Golf Course, the pet-friendly community offers residents a serene ambiance coupled with convenient access to major thoroughfares. Its prime location within 10 miles of prominent employers like Baptist Health System, JBSA-Randolph Air Force Base, Rackspace and the new H-E-B Distribution Center further underscores its desirability.

Featuring a variety of one-, two- and three-bedroom layouts, Regatta Apartment Homes presents residents with an array of modern comforts. From spacious floor plans to tile-wrapped fireplaces and vaulted ceilings, each apartment exudes contemporary elegance. Community amenities abound, including a swimming pool, tennis court, clubhouse and lakeside walking trails, enriching the living experience for all residents.