Park West Apartments and Parliament Bend Apartments, two contiguous multifamily complexes in the Churchill submarket of San Antonio, recently received $11.5 million in preferred equity. Built in 1979, the Park West Apartments are located at 11845 West Ave. and consists of 327 one- and two-bedroom apartments. Parliament was built in 1982 at 11838 Parliament St. and consists of 232 one- and two-bedroom apartments.

JLL capital markets worked on behalf of the borrower, a joint venture between Old Three Hundred Capital LLC, an Austin private-equity real estate firm, and Chicago-based Pearlmark Real Estate, to secure the preferred equity through Brasa Capital Management. Old Three Hundred and Pearlmark are co-sponsoring the deal and assumed the existing CMBS note, with both firms providing an undisclosed amount of JV equity and Brasa bringing the $11.5 million in preferred equity to fill out the capital stack.

“As a 1980s-vintage product, the properties have a lot of value-add potential while still possessing good bones,” said Nicholas Yarnall, co-managing partner of Old Three Hundred Capital. “We are looking forward to working with Pearlmark on executing our value-add strategy which will include major upgrades to the properties’ common areas and amenities as well as interior finish-outs.”

The new ownership plans to rebrand and refresh both apartment complexes, with more than $2 million in planned improvements at Parliament Bend and close to another $4 million in planned upgrades for Park West.

“We’re excited to add two properties in a high-growth area of the San Antonio market, for substantially below the market rate price, and with great potential for further upside after completion of our renovation program,” adds William Gottfried, co-managing partner at Old Three Hundred Capital.

The JLL team representing the borrower was led by Marko Kazanjian, Chris McColpin and Andrew Cohen.