Cottonwood Buys Texas Apartments
Downtown-based private equity real estate investment firm Cottonwood Group has acquired a 636-unit multifamily portfolio located in San Antonio, Texas, with Dallas-based Texsun Holdings.
The properties consist of San Mateo Apartments, located at 3787 Perrin Central Blvd., and Heights on Perrin Apartments, located at 2555 NE Interstate 410 Loop. The portfolio benefits from a desirable location in San Antonio’s northeast submarket with proximity to some of the city’s major employers, including Amazon.com Inc., Rackspace and Southwest Airlines. The portfolio is also near an abundance of mixed-use, retail, entertainment and recreation destinations, including Alamo Heights, The Quarry, Terrell Plaza, and multiple golf courses, resorts and parks.
“We acquired the portfolio through our Cottonwood Real Estate Founders Fund, which targets opportunities with a special situation profile. This acquisition opportunity was particularly compelling due to its attractive cost basis, desirable location with positive demographic and employment drivers, and strong operating partner,” Mark Green, Cottonwood’s chief investment officer, said in a statement. “We are excited to partner with the Texsun team on this acquisition, a firm whose operational expertise and track record complement our capabilities on the capital markets side, and we look forward to a successful joint venture going forward.”
The business plan includes a renovation and repositioning of the properties, for which Cottonwood and Texsun have budgeted approximately $7 million, as well as transitioning management of the apartment complexes to ResProp, a multifamily property management firm founded in 2010 that operates more than 9,500 units across 65 properties.