Mamaroneck, New York – March 11, 2022 - LRE Management LLC (“LRE”), a national real estate private equity firm, announced that a Joint Venture entity in which it has an 90% equity interest completed the acquisition of Esperanza Apartments (“the Property”), a newly developed 244-unit multifamily property located in San Antonio, TX. LRE contributed $20.6 million of equity in connection with the off-market transaction. HUD debt was assumed for the purchase that carries a fixed interest rate of 3.15% and a 40-year term.
Built in 2020, this garden-style Class A community has 24 studio, 76 one-bedroom, 120 two-bedroom units and 24 three-bedroom units. The Property, less than 2 years old, is in exceptional condition with luxury interior features, a resort style pool, state of the art fitness center, fully equipped clubhouse, dog park and wash station, movie lawn and outdoor game court.
“With no value-add investment planned, the business plan is quite simple; roll over below-market leases from the initial lease-up to market rates, implement first-class operations and generate consistent cash-flow for our equity partners during our long-term hold with low fixed-rate HUD debt”, shared Eric R. Londa, Managing Partner at LRE. “We are thrilled to be acquiring our fourth property in the San Antonio market, and our eighth in Texas. San Antonio, which historically lagged the rent growth of Austin and Dallas, has emerged from the pandemic stronger and is now attracting institutional capital and corporate relocations given its consistent population growth, educated workforce and affordability relative to Austin, just 70 miles away."
The Property is located West of downtown San Antonio, in the aptly named Far West Submarket, where population growth has been explosive over the past decade and is forecasted to continue. West San Antonio, like the overall market, includes a diverse group of employers including JP Morgan Chase, Wells Fargo, Southwest Research Institute, Sea World and Lackland Air Force Base. The submarket also has highly rated K-12 schools, outdoor amenities like Government Canyon State Natural Area and plenty of retail and dining options.
San Antonio is the seventh-largest city in America and the second largest in Texas behind only Houston. Per the most recent Census, the city was ranked in the top three in population growth nationally. Affordability and a diverse and high paying job base have attracted in-migration from all over the country, and as of this year, the metro is the number one destination for Texans.
LRE acquisitions have historically focused on the Sun Belt region, encompassing the states found in the Southeast and Southwest, targeting apartment communities in high growth primary markets where there is a supply-demand imbalance and secondary and tertiary cities with solid fundamentals.
About LRE Management LLC
LRE Management LLC ("LRE") is a national private real estate company that acquires Multifamily properties throughout the country. LRE invests side by side with its network of high net worth and family office partners by co-investing or forming Joint Ventures with proven sponsors and operators. LRE’s core investment principle is to deliver tax efficient current income while generating long term capital appreciation for its investment partners. Since its founding, LRE and its associated entities have acquired over 6,000 units across 21 properties, with transactions totaling in excess of $1.0 billion. For more information about LRE Management, visit www.lremanagementllc.com, or Linkedin or call (704) 253-0520
Contact:
Eric R. Londa | Founder, Managing Partner
LRE Management LLC
info@lremanagementllc.com