This is a rescue capital opportunity to acquire a 190-unit, garden-style multifamily asset built in 1985 in San Antonio, TX at a basis of approximately $60,505 per unit. The distress is ownership-driven rather than physical, and the going-in cap rate of 5.56% on underwritten NOI of $784,082 compares favorably to the trailing-twelve-month NOI of $654,424 — confirming meaningful operational upside already embedded in underwriting. The 129,882 SF asset's 1985 vintage presents a well-understood renovation profile, with original finishes and mechanical systems that respond well to targeted capital improvements while remaining structurally sound.
The business plan targets a 3-year hold focused on operational stabilization, expense rationalization, revenue management, and selective capital deployment to common areas and unit interiors. The projected exit assumes a 6.00% cap rate — a conservative 44-basis-point compression from the going-in rate — underpinning LP return projections of a 21.23% IRR, 1.82x equity multiple, and a 20.00% preferred return.
San Antonio continues to demonstrate resilient multifamily fundamentals supported by steady population growth, a diversified employment base anchored by military, healthcare, and technology sectors, and sustained in-migration from higher-cost Texas metros. Key risks include rescue capital complexity, dependency on ~20% NOI growth over the T-12 figure, exit cap rate sensitivity, vintage capital expenditure exposure, and broader interest rate uncertainty. This summary is prepared for accredited investors during the diligence phase and does not constitute an offer to sell or solicitation to buy any security.
