Pure Multi-Family REIT Buys Two-Property Portfolio in Texas for $117.5 Million

by Scott Reid

SAN ANTONIO, TEXAS — Pure Multi-Family REIT has agreed to acquire two multifamily apartment communities located in San Antonio for a combined price of $117.5 million. The seller was not disclosed.

Pure is a publicly traded, Canadian REIT based in Vancouver that invests in U.S. multifamily real estate assets.

The two properties are located at 22800 Bulverde Road and 4092 TPC Parkway, both in the San Antonio submarket of Cibolo Canyons.

The Bulverde Road property was constructed in 2007 and consists of 344 luxury residential units averaging 1,135 square feet. The 34.8-acre Class A community features a 13,000-square-foot clubhouse, 3,500-square-foot fitness center, onsite spa, townhome buildings with attached garages, resort-style swimming pool and barbecue areas with grills for outdoor entertaining.

The TPC Parkway property was constructed in 2014 and consists of 416 luxury residential units averaging 943 square feet. The 19.4-acre Class A community provides views of downtown San Antonio and the neighboring TPC golf courses. Property amenities include a clubhouse, 24-hour high-tech fitness center, detached private garages, infinity-edge swimming pool and barbecue areas with grills for outdoor entertaining.

“We are excited to add the TPC Portfolio, consisting of two top-quality assets, located in the prestigious Cibolo Canyons master-planned sub-market, to our existing San Antonio holdings,” says Steve Evans, CEO of Pure. “With these acquisitions we have once again successfully executed our portfolio renewal strategy through recycling our capital out of the profitable sale of Windsong Apartments [in Dallas] and redeploying it into these newer assets, thus enhancing the overall portfolio quality and shareholder value.”

New first mortgage financing will be approximately $78 million combined between the two properties, which will bear an average fixed interest rate of approximately 4 percent annually for an average term of 12 years, according to the buyer. The purchase price represents a stabilized capitalization rate of approximately 5.5 percent.

The acquisition is expected to close on March 1. Following the transaction, Pure’s portfolio will consist of 16 multifamily properties totaling 5,197 apartment units, with an average size of 930 square feet.

Pure is undertaking due diligence on the acquisition of a third portfolio asset, located in Austin, according to Evans.


— Scott Reid

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