USAA Real Estate Co plans to invest in more than $650M of multifamily ground-up development around the US this year (same as last year) with an eye on San Antonio for some of those projects. That’s why we’re excited to have USAA Real Estate Co managing director of multifamily development Hailey Ghalib among our expert panelists at Bisnow’s annual San Antonio Multifamily summit on March 8 at The St. Anthony (300 E Travis).
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Hailey tells us the development goal—barring any major shifts in the market—will be a highly selective process where the multifamily market fundamentals are strongest and valuations are robust. Core markets with Class-A, high-density transit-oriented developments and central locations will be among the targets. USAA has about $3.5B in multifamily development nationally with Texas a major component, she tells us.
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In San Antonio, a lot of USAA's multifamily development investment activity is focused on The Town Center at La Cantera, where USAA has developed and leased up the first phase. It’s a Class-A, 323-unit project called The Residences at La Cantera (pictured). USAA has started construction on Celeste at La Canterra, which is adding 300 units as the second phase. Hailey says Celeste will appeal to a younger crowd than The Residences. The Residences was designed with a Ritz-Carlton experience in mind, she says, whereas Celeste will feel like a W Hotel experience with a rooftop pool and resident's lounge. It's targeted for a mid- to late 2017 completion.
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ARA executive managing director Pat Jones tells us he’s been blown away by investor interest and tour traffic in San Antonio over the past year, and he anticipates more of the same in the first half of this year. He’s seeing core and value-add deals come to market, noting that it’s the right time for core deals to move to the forefront as merchant-built properties are stabilizing and coming to market. Interest is coming from outside Texas—from New York, Chicago and internationally from Canada and Israel. Those investors look at Central Texas as a safe bet for multifamily investment, he says. San Antonio and Austin are highly ranked in the US with a growing Millennial population as well as good job growth and low unemployment. Pat is marketing a value-add portfolio in San Antonio and tells us his biggest deal of the moment are his children (pictured).
Come hear more from the panelists at Bisnow’s annual San Antonio Multifamily summit on March 8 at The St. Anthony (300 E Travis)! Register now.
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