Virtus Real Estate Capital Announces 283 unit Multifamily Development in San Antonio’s Pearl District
AUSTIN, Texas – Virtus Real Estate Capital (“Virtus”), a leading asset manager of alternative real estate property types, announced today it will be partnering with The NRP Group to develop a 283 unit class “A” multifamily project in San Antonio, Texas. The development, currently referred to as “Broadway Jones”, will offer affordable, high quality housing in the city’s highest demand submarket, the Pearl District.
Located along the historic River Walk of San Antonio, the Pearl District is one of the city’s most vibrant and affluent areas. Its location directly north of downtown makes the recently redeveloped mixed-use site one of the most attractive places for young professionals to live. With 30,000+ visitors weekly, the increasing popularity of the Pearl District has attracted multiple large office and retail developments that will bring new jobs to the area and continue to drive housing demand in the years to come.
Due to a unique Public Facility Corporation (“PFC”) in partnership with the San Antonio Housing Authority, Broadway Jones will provide affordable, high quality housing in the city’s hottest market, with 50% of units rented to tenants who earn 80% of the area median income or less. The growing housing affordability gap, caused by flat real wage growth and skyrocketing land and construction costs, has rapidly increased the demand for workforce housing, or “quality affordable housing for the mass renter market” in recent years, and the property type represents one of Virtus’ core cycle-resilient targets. The PFC structure of Broadway Jones is made possible by legislation that supports the construction of affordable housing in exchange for a tax abatement and will allow the development to provide the highest quality property in the submarket at a significant rent discount to the competition.
“Broadway Jones is a special project that we are thrilled to be part of with our valued partner, NRP. The idea that we can deliver best in class housing at an affordable price point in one of the most dynamic submarkets in Texas is really exciting,” said Kevin White, Virtus Managing Director, Acquisitions. “We believe in the need for high quality workforce housing. Construction costs escalation has made it increasingly difficult for developers to build high quality housing that is affordable, and it’s partnerships like this one that make these projects economically viable. This is our third project of this type in San Antonio and we are looking for other municipalities that would like to partner to bring this to their communities.”
This will be Virtus’ third development with NRP, a strategic partner who has developed more than 5,000 units in San Antonio over the last five years. NRP’s expertise and proven track record in the region will prove invaluable to Broadway Jones’ success.
“Our mission is to create exceptional rental housing opportunities for individuals and families, regardless of income, so we’re excited to partner on this development bringing quality apartment homes to this vibrant area of San Antonio,” said Dan Markson, Executive Vice President of Development for The NRP Group. “NRP has been connected with San Antonio for fifteen years and it’s been incredible to see the Pearl District evolve. We look forward to adding to the upward trajectory by providing housing options at a mix of income levels to this bustling community.”
About Virtus
Virtus Real Estate Capital, founded in 2003, brings thoughtful stewardship to the practice of real estate investment, delivering non-correlated alpha via cycle-resilient real estate. Over the last 15 years, Virtus has acquired 227 properties for a combined acquisition value of over $3.6 billion and has fully realized 172 property investments. With a strong and established track record, Virtus has proven to be successful in all phases of the market cycle. For more information, please visit www.virtusre.com.
About The NRP Group
The NRP Group is a vertically integrated developer, owner, builder, and manager of best-in-class multifamily housing. Since its founding in 1994, NRP has delivered more than 33,000 apartment homes, and currently manages over 20,000 residential units. The company utilizes the entire breadth of its in-house capabilities to fulfill its mission: creating exceptional rental housing opportunities for individuals and families, regardless of income.
Through its disciplined approach to vetting opportunities, NRP has established a track record of delivering impressive returns for investors. The company’s formidable size and depth of talent provides the experience and infrastructure necessary to execute developments of varying degrees of complexity and scope in both urban-infill and suburban locations, including market- rate, affordable, and senior housing. As a three-time recipient of the National Association of Builders Multifamily Development Firm of the Year and recognized Top 25 Developer by Multifamily Executive, NRP is leveraging its decades of practice by also providing construction and property management services to outside owners and developers. For additional information, visit www.nrpgroup.com.
Contact
Mrs. Brooke Akins
bakins@virtusre.com
Disclaimer
This communication is not an offer of any security nor the solicitation of an offer to purchase any security.
You May Also Like
-
-
January 8, 2024Virtus Presents: The 2024 U.S. Real Estate Outlook
It has been many years since there has been a more dramatic change in commercial real estate ("CRE") markets. The unprecedented interest rate increases from the Great Tightening have had …Read More -
January 31, 20232023 U.S. Real Estate Outlook
Virtus Presents: The 2023 U.S. Real Estate Outlook It’s been many years since there has been a more dramatic change in commercial real estate markets. The unprecedented…Read More -
December 12, 2022New Gateways for a New World
Recent years have seen immense investment interest in rapidly growing markets outside the general Tier-I “Gateway” commercial real estate markets. However, with a climate of renewed uncertainty and In this whitepaper, Virtus explores the case for a new class of markets that have benefited from patterns in demographic growth, regulatory policy, and technological advancement over a much longer…Read More -
November 16, 2022Virtus Real Estate Capital and Almanac Realty Investors Announce Strategic Minority Investment
Transaction marks the second minority GP stakes investment from a fund managed by Almanac and will support Virtus’ continued growth…Read More -
May 31, 2022The Effects of Climate Change on Real Estate Investments
The impact of climate change on commercial real estate markets has long been underappreciated due to the pervasiveness and time distance of expected effects. However, that sentiment is beginning to…Read More -
May 16, 2022The Rising Popularity of Alternative Asset Classes in Core Portfolios (Alts on the Rise)
Despite challenges in accounting for returns and benchmarking performance, alternative asset classes offer defensive or yield-oriented core strategies associated with large institutions along with lower macroeconomic and real estate…Read More -
January 13, 20222022 U.S. Real Estate Outlook
2022—The best of times and the worst of times Like many of you, we welcome the arrival of 2022. But, despite the euphoric backdrop of most asset classes, pervasive…Read More -
November 16, 2021The Current State of Disruptive Construction Technologies
Despite skyrocketing costs in traditional construction, advances in construction technology has been relatively muted for several decades compared to other crucial sectors. However, the current moment shows evidence for both In this whitepaper, we help the reader make sense of this evolving landscape, tracing the current state of “new best practice,” and the most likely trajectory future construction will take A few key takeaways - Conventional “modular” construction techniques will continue growing and improving, but their fundamental limits remain. - The current moment is one of rapidly proliferating tech solutions across all - Building technology will provide a competitive edge for individual firms or strategies, but will not solve housing affordability alone. Read the paper here. About Virtus Virtus Real Estate Capital, founded…Read More -
June 21, 2021Virtus Real Estate Capital Closes $578 million for Virtus Real Estate Capital III, LP
Virtus Real Estate Capital ("Virtus"), an Austin-based private equity real estate fund manager focused exclusively on cycle-resilient property types, announced the final close of Virtus Real Estate Capital…Read More