Santa Rosa-based Praxis Capital Inc. acquired 209 apartments in San Antonio, Texas.
The real estate private-equity investment company plans several more property acquisitions in major Texas metropolitan areas. Praxis was able to raise the capital for the December acquisition of Villas de Sendero Apartments quickly, half of it from repeat investors, according to Bob Dreher, senior vice president for investor relations.
“This acquisition has allowed us to finish 2016 with over $50 million in new acquisitions," Dreher said.
Praxis describes its approach as “conservative underwriting and extensive due diligence.”
“This value-add play is ideal for this point in the real estate and economic cycles, offering an excellent margin of safety,” said Brian Burke, president. “We've had tremendous success employing similar strategies with other Texas properties and this property holds promise for excellent cash flow with upside potential. We foresee this as a very desirable property for both our residents and investors.”
Villas de Sendero is a 209-unit class B property in an infill location in northwest San Antonio. It is located within the Westover Hills area, the city's second largest employment corridor, with a job base of 210,000.
There are a number of corporate regional headquarters, call centers, government buildings and hospitality destinations. Major employers include Wells Fargo, Nationwide, JP Morgan, Microsoft, QVC Network, NSA, SeaWorld and Hyatt Hill Country Resort and Golf Courses.
The 17-building property sits on over 10 acres. It has a mix of one-, two- and three-bedroom units, ranging from 400 to 1050 square feet. Praxis plans to continue renovating and upgrading the property.
Praxis focuses on value-add multifamily properties in U.S. growth markets.