Palatia Apartment Homes

Multifamily

Investment Highlights

Investment Summary

Palatia Apartment Homes is a well-positioned value-add multifamily property located in North San Antonio just 15 minutes north of Downtown San Antonio. The property is strategically located along Loop 410, connecting residents to every corner of San Antonio. Acquired from an absentee owner at $87k per unit in a market where the average trade occurs above $100k per unit, this investment presents an exceptional opportunity to implement cosmetic value-add upgrades as well as capitalize on rent growth supported by historical property performance and recent rent growth trends of the overall San Antonio market. 

San Antonio boasts a low cost of living, a diverse culture, strong local, regional, and state economies, continual job growth, a pro-business mindset, an absence of corporate and personal income taxes, and, most notably, an extremely high quality of life. Of the four largest cities in Texas (Austin, Dallas-Fort Worth, Houston, and San Antonio), San Antonio is by far the most affordable. Multifamily performance is strong, with median rents rising 14% since January 2021. Even more impressively, infill value-add multifamily properties in San Antonio experienced cap rate compression of 100 basis points since 2019 to as low as 3.50%, indicating strong investment performance and investor appetite.

Silverado Interests acquired Palatia Apartment homes in early 2022 in partnership with 180 Multifamily Properties.