If you haven’t been down Cevallos St or Clay St recently you’re in for a surprise. The Slab at Probandt St is now gone and a 229 unit apartment complex named Southtown Flats is under construction. You’ll also notice ground has been broken for a new in-fill project that will feature eight new single-family homes between Clay and Cevallos. Recent Zoning signs have been spotted along Clay St with plans for more single-family in-fill homes as well as another multi-family apartment complex. Oh yea, and Big Tex (or Blue Star 2) is also now under construction. This area of Southtown is booming with development. Here’s the article written by Stephanie Guzman for the January 2, 2015 San Antonio Business Journal. Link to article.
Southtown to gain new multifamily option
Construction crews will break ground on a large residential development south of downtown San Antonio this month, bringing more apartments to the community known as Southtown.
Transwestern Development Co. will partner with the real estate investment firm Amstar to develop a 229-unit apartment building at 111 Probandt St., just across the street from Blue Star Brewing Company.
In a neighborhood populated by older single-family and historic homes, a brand new five-story apartment complex will rise for renters who want to live downtown. It’s unclear how much rent will cost at the new complex, named Southtown Flats. Yet with its resort-style design, it appears the complex will be marketed to high-income renters.
Southtown Flats’ high-class amenties include a pool with cabanas and hammocks, outdoor kitchens, fire pits and a rooftop deck with downtown views. A clubhouse on the property includes a catering kitchen, dining areas, lounges with televisions and fitness center — including a yoga studio. The property also comes with a large parking garage and bike storage rooms.
Southtown is already popular with high-income renters. Right around the corner from Transwestern’s 2.3-acre project site is Cevallos Lofts, another luxury apartment complex opened in 2011 that has done well with renters. Rents there range from $1,200 to $2,800 monthly and the building is 96 percent occupied and 99 percent preleased, according to its leasing office.
This isn’t a surprise considering San Antonio’s overall multifamily market remains steady. San Antonio’s multifamily occupancy rate sits cool at 90.5 percent, a little less than Texas’ overall 91.7 percent occupancy rate, according to commercial real estate firm, CBRE.
With occupancy rates so high, it’s no wonder Transwestern is beginning to dip into the multifamily market. The Houston-based real estate firm typically builds and manages commercial properties and large office buildings. Yet the company has begun to develop a string of new high-end apartment complexes, including projects in Fort Worth and Houston.
This is Transwestern’s first multifamily project in San Antonio. The development company is confident its project will be in high demand because of Southtown’s proximity to restaurants, art galleries and its downtown location.
Amstar, which provided the equity behind the project, agrees.
“Southtown is an easy place to like because of its restaurants and activity and the scene is a lot of fun,” said Amstar Managing Director Daniel Cohen. “We’re excited about this project and excited to move forward. We like San Antonio’s employment story of growth in addition to the urbanization we’re seeing downtown.”
Southtown Flats will be on the market by spring 2016.
