The Milestone Group has added to its growing Sun Belt portfolio with its purchase of Archer Stone Canyon Apartments, a 228-unit community located in San Antonio’s Far North Central neighborhood. The project was previously owned by Internacional, according to Yardi Matrix data.
A Newmark team, led by Vice Chairman Patton Jones, Executive Managing Director Matt Michelson and Managing Director Andrew Dickson represented the seller.
The buyer assumed an existing Freddie Mac loan associated with the community. According to Milestone Vice President of Acquisitions Jim Duey, the firm intends to undertake several capital enhancements at the property, particularly towards improving unit interiors, amenity spaces and the community’s appeal to renters with families.
Archer Stone Canyon was built in 2005, according to Yardi Matrix data. Prior to its sale to Milestone, the property last traded in 2018 when Internacional acquired it from Greystar for approximately $27 million.
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Archer Stone Canyon, which is situated on 18.6 acre, comprises 22 buildings which are three- or four-stories tall. The community offers one-, two- and three-bedroom apartments averaging 1,108 square feet. Average rent is $1,417, according to Yardi Matrix data.
The units include computer nooks, sunrooms, patios, as well as laundry machines. Select units include detached garages. The community’s amenity spaces include a swimming pool, fitness center, clubhouse and controlled-access playground. Property management services, provided by Greystar, are offered on-site.
Located at 21302 Encino Commons, the community is near local schools and parks, as well as retail, dining and entertainment venues and employers. U.S. Highway 281 and downtown San Antonio are easily accessible.
Value-add deals in San Antonio
San Antonio’s multifamily market is feeling the weight of decades-high interest rates, alongside slowed rent growth and inconsistent construction pipelines. According to a May 2023 Yardi Matrix report, the Alamo City saw only $176 million in sales in the first quarter of the year, a far cry from the $822 million during the same period in 2022. Eight of the 13 properties that sold in this interval were value-add deals, where buyers listed capital improvements as their primary impetus for purchasing a property. One such deal during this period was Nord Group’s March purchase of Terrain Medical Center and Latitude, two communities totaling 43 apartment buildings and 492 units.
