Photo by Ben Olivo | Heron
A commercial real estate firm from Miami has purchased the 120 Ninth Street apartment building on the River Walk across from Paramour nightclub.
The Florida firm, Constellation Group, bought the 220-unit complex on Oct. 29, according to a news release. The previous owner was a partnership between Indianapolis development firm SC Bodner Co. Inc. and Carlyle Group, a private equity firm headquartered in Washington, D.C., which built the complex in 2018.
Constellation did not disclose the purchase price. The Bexar Appraisal District assessed the property at $42 million this year.
With a pool overlooking the San Antonio River, 120 Ninth Street is a prominent example of the type of high-end apartment complex that proliferated in north downtown after the completion of the Museum Reach stretch of the River Walk in the late 2000s and with the help of housing incentives delivered through the city’s Center City Housing Incentive Policy, or CCHIP. The city ended the policy last year, but still awards subsidy packages on a case-by-case basis and with City Council approval.
120 Ninth Street received a nearly $4 million package through CCHIP in 2015, the majority of which is a 100 percent rebate on the city portion of its property tax bill over 15 years worth an estimated $3.1 million.
[ Related: At 120 Ninth Street, rents start at $1,300 | Aug. 11, 2018 ]
Constellation cited the growth of the Pearl and the proximity of downtown employers as being “pivotal” in its decision to acquire the complex. The purchase marks the firm’s first acquisition in San Antonio, according to the release.
“We could not have asked for a better property to serve as the first San Antonio asset in our expanding multifamily portfolio,” said Eduardo Otaola, a principal at Constellation, in the release. “A newly-built community in a downtown corridor that is experiencing a renaissance of new development, 120 Ninth Street is poised for strong leasing activity and rent growth.”
Richard Webner is a freelance journalist covering Austin and San Antonio, and a former San Antonio Express-News business reporter. Follow him at @RWebner on Twitter
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[…] Lately, several merchant builders have sold apartment complexes downtown. In December, Alamo Manhattan (Dallas), which built Jones & Rio on the Museum Reach, and Stillwater Capital (Dallas), which built the Augusta Flats on McCullough Avenue, sold their apartments to a partnership led by a subsidiary of global investment firm Franklin Templeton Investments. Two months earlier, SC Bodner Company of Indianapolis sold 120 Ninth Street, also on the Museum Reach, to Miami-based Constellation Group. […]