Parc 410 Bridge Loan to Provide Funds for Acquisition and Expenditures

A $27.6 million bridge acquisition loan was recently provided for Parc 410 Apartments, a 344-unit apartment complex located in San Antonio. The purpose of the bridge loan is to provide funds for the acquisition and capital expenditures including light renovations to ensure that the property remains an attractive rental option for its tenants.

Adam Sasouness, Dwight Capital managing principal, originated this transaction.

The property consists of 21 apartment buildings, a clubhouse building, and two maintenance shops on a 10-acre site.

Parc 410 is located in the Far West San Antonio submarket, a growing market that consistently supports demand for multifamily housing, according to CoStar. This market is anchored by Fortune 500 companies such as Valero and USAA. Strong employment drivers, and a favorable business and personal tax climate has resulted in positive net-migration that is fueling the demand for multifamily housing.

With population growth forecasted in the next five years, occupancy is expected to remain strong and rental rate increases are anticipated going forward. The submarket has experienced stable rent growth year-over-year since 2016, averaging 1.7 percent per year. Looking ahead, rent growth forecast remains resilient and CoStar projects a 4.7 percent rent increase per year through 2024.