Nexus Urban Living
We came across this property through our broker relationship. The previous owner had been trying to manage this property from New York, with a management company based out of Austin, and no local San Antonio presence. That had 30% vacancy, had not been able to raise rents in line with the market for 4 years, never had any staff to occupy the leasing office, and most units had some level of maintenance issues that the owner had no budget to fix. The previous owner had even started missing mortgage payments. Because of the seller’s financial distress and mismanagement, we were able to purchase this property about 30% cheaper than typical comparable properties were trading for in San Antonio. After a few months of completing the maintenance backlog, updating the marketing, and putting in place sharp performing managers locally, were were able to increase rents from $830/mo up to $1,250/mo, which across 75 units will increase the value of the property by around $5.1M on a 6.0% cap rate valuation.