The 330-unit Tradehouse at Bulverde Marketplace in San Antonio, Texas, transacted during the COVID-19 pandemic. Built in 2018, this Class A, six-building multifamily property was 88 percent occupied, and 96 percent leased at the time. It boasts state-of-the-art amenities, including a fitness center, resort-inspired pool, and contemporary lounge. Like all transactions, there were challenges to overcome, but the pandemic contributed to the hurdle. The main challenge was the increased risk and uncertainty of rent collections, both in the short and medium-term, due to never-before-seen unemployment numbers. Additionally, the ability to procure financing all but vanished as COVID-19 took hold of the economy.
Through extensive use of Matthews™ industry-leading marketing strategies and the diligent effort of the multifamily team, the property was shown to various buyer pools ranging from high-net-worth individuals to institutions to foreign capital. While the marketing period was completed before the outbreak, there was no hard money prior to the national lockdown. The Matthews™ team was able to keep the buyer engaged, the seller motivated, source debt, and ultimately get the transaction closed.
Tradehouse at Bulverde generated a high level of interest and procured over a dozen offers, revealing the strong investor appetite for San Antonio, Texas multifamily product. The asset traded for an undisclosed price with only a minimal price reduction due to COVID-19, which was below the national pandemic price reduction average. Sun Holdings Group, a Houston-based multifamily firm that owns other assets within the market, was the buyer. The Matthews™ team was able to complete the closing during the COVID-19 pandemic demonstrating their determination and dedication to fulfill the client’s and buyer’s need, even during unprecedented times.
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