Overlooked apartment properties in Alamo City get a second look - San Antonio Business Journal:

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The work comes courtesy of , a Calif.-based firm that purchasesd the property at 2503 Jackson Keller this past The cost ofthe renovation: Abouty $1.5 million. And that figure is just for phased one ofthe rehab, accordinf to Caltex partner Eli Russo. "This firstt round, we want to get (the complex) in good make it safe," says Russo, who also stresses preventativse maintenance in thisfirsy go-round of improvements. The work shouldc be completed this December. Earlg on, for example, crews begabn cutting down the jungle of plant growth that once hid The Bluffsz fromthe public's view.
Revealing the properthy that lay behind thefoliages was, for Russo, tantamount to finding the Maya ruins. The property is also getting a new paint job and new carpet in almost all of its318 units, says who is heading up the rehab for "We are doing a full rehabilitation insid e and out," Russo adds. "Ou philosophy: We rehabilitate into a (development) that we woulfd like to live in." Phase two, Russo will involve an upgrade of the interior of thepropertyh -- including the mechanical and electrical That work is slated to begihn in mid-November -- once the complex has reached an occupancy rate of about 65 percent.
At present, the projecty is hovering at a 50 percentoccupanchy rate. Costs for phase two have not been The Bluffs is the latest multifamilty renovationfor Caltex, which was established in 2003. Past rehabs includ three properties on the NorthbCentral Side: Rampart House, Frenchn Chalet and the Cosmopolitan Apartments. Caltesx has since sold all three Asked if Caltex plans to sell The Bluffe once the workis complete, Russ o says that it's up to the market. Caltex is alreadg eying a couple of more multifamily communitiew that it would like to purchase and According to Will Balthropeof Encino, Calif.-based Brokerage Co.
, oldetr apartment properties with an upside -- such as The Bluffs -- have becomd a much more valuable and sought-afte r investment asset in the past three As demand continues to drivs up the price for newer many investors are now seeking what he callss opportunity plays -- buying older complexes at a competitivwe price, and rehabbing and re-tenanting them. As a result, ownersa are able to bump up theie rents and achieve a good return onthei investment.
"Older properties in good locations are starting to become very soughg after by investors because they offerf a greater potential says Balthrope, who is the senioer director of Marcus & Millichap's National Multi Housing Group in Texas. Indeed, The Bluffs' locationh made it a savvy buy for says Balthrope, who represented the seller in the deal -- a foreignj investor called Metra United. At the time of the Balthrope was the director of ApartmenrBrokerage Services.
That is not to say that a good locatioj will cancel out other problems for a new One of the biggest hurdlews is changingthe public's perception of a development that has gone downhillo over the years, Balthrope "An apartment is a lot like a garden. It'sw a living, breathing says Balthrope. "It is management Left unattended, pretty soon it's just a bunch of For his part, Caltex's Russo, who has spent over 20 year in theconstruction industry, is undeterred by the challenge of bringing a property back to "To be able to take a (run-down) apartmengt and make it the talk of the town, it'd like an art work," he says.
Speaking of investmentg activity in themultifamily market, Hendricks Partners recently announced the sale of Huntley Manor, a 141-unit propertyh located at 4550 Lavender Lane on the city's East The buyer was a locally based investment partnership. The selle r was , also of San The deal was negotiated by Chrixs Ross and Scott Weems of the locallHendricks & Partners office. As part of its grand-openingt celebrations, Boston's The Gourmet Pizza recentlyu held a fundraiser to benefit theBoys & Girls Clubxs of San Antonio. The event raised which will be used to help supportthe organization's after-schoolo programs.
"They are a wonderfulk organization that provides both the skillk sets and positive reinforcement that so manyof today'xs children desperately need," says Jamir Price, managing partner for -- the local franchiser for Dallas-based . The inaugural Boston's openedf last month at Legacy -- a retail/office/residential projec t at Loop 1604and U.S. Highwayt 281 North on the city's far North Side.