Villas de la Cascada: Land to Grow on in San Antonio, TX

This 120-unit, 1984 vintage San Antonio property included a 5.5-acre parcel at no additional investment. Within three months, Comunidad Partners received permission for increased density on the land, allowing for development of additional units and income growth.

Located between Medical Center and Westover Hills, the property provides convenient access to employment centers and quality schools. Upgrades to interior, exterior and amenities, plus health screenings and other benefits ensured resident satisfaction and retention along with rent increases.

Villas de la Cascada was acquired at a discount of nearly 15% to its competitive set and offered a strong opportunity to drive net operating income as the previous owner mostly focused on occupancy, resulting in below-market rents and limited income collection.

Acq./Exit: July 2013/Oct 2019

Total units: 268

Invested equity: $4,200,000

Total Cap./Unit: $20,700,000/$77,200

Exit Price/Unit: $26,500,000/$98,900

Cash-on-Cash: 8.0%

Rent CAGR/NOI CAGR: 5.3%/17.6%

Gross IRR/MOIC: 21%/2.6x

Leverage: 79.7%

Value Creation

• Completed development of 148 units on land parcel and updated existing interiors, exteriors, clubhouse and amenities within 24 months.
• Drove rents to market levels while simultaneously implementing a ratio utility billing system (RUBS).
• Social impact programming including cancer/mammogram screenings and education, children’s dental exams and discounts, tax prep programs and military benefits, among others.
• Sold asset to a syndicator that was aggressively pursuing assets in the market and willing to pay premium pricing.