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Newmark announces the sale of ReNew at TPC, a 408-unit, value-add multifamily asset located in northeast San Antonio, Texas. The property traded from FPA Multifamily—a San Francisco-headquartered, privately held multifamily investment firm—to DB Capital Management, a private multifamily investment firm based in Playa Vista, California. Newmark Vice Chairman Patton Jones, Senior Managing Director Matt Michelson and Managing Director Andrew Dickson represented the seller in the transaction.
“ReNew at TPC presented investors with an outstanding value-add opportunity in the highly sought-after North San Antonio submarket,” said Jones. “The asset’s location near Stone Oak surrounded by affluent demographics and expensive single-family homes attracted significant private investor interest focused on contemporary upgrade opportunities. ReNew at TPC will be an excellent addition to DB Capital’s growing Central Texas portfolio.”
ReNew at TPC is a 408-unit, garden-style apartment community located at 5707 TPC Parkway in San Antonio. The property features a mix of studio, one-, two-, three- and four-bedroom units with an average unit size of 905 square feet. Unit interior features include nine-foot ceilings, hardwood-style flooring, kitchens with stainless steel appliances and granite counter tops, and oversized walk-in closets. Community amenities include a pool with sundeck and lounge seating, grilling areas, clubhouse with resident lounge and executive business center, 24-hour fitness center and fenced dog park.
The average household income within a one-mile radius of ReNew at TPC is nearly $120,000 per year, while 51.3 percent of this same population holds a bachelor’s degree or higher. The property is proximate to an abundance of major employers in the area, including the RidgeWood Park (home to Marathon Petroleum Corp.), Sonterra Medical Center, JP Morgan Chase Corporate Center, Amazon, and the Randolph Brooks Federal Credit Union (RBFCU) headquarters. Surrounding retail destinations including Village at Stone Oak, Legacy, Northwoods, Sonterra Village and The Vineyard. Additional nearby attractions include multiple golf courses, resorts and parks, including JW Marriott San Antonio Hill Country Resort and Spa.
Following a record 2021, investor demand for multifamily remained robust during the first quarter of 2022 with $63.0 billion in U.S. sales volume, according to Real Capital Analytics data analyzed by Newmark Research. In addition to this volume signifying the largest first quarter on record, year-over-year volume accelerated 65.4 percent. Trailing twelve-month volume increased to $374.3 billion. Remarkably, major markets in Florida and Texas accounted for 27.3 percent of total volume over the past 12 months.
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Salt Lake City — Multifamily investment firm DB Capital Management (“DB Capital”) continues to expand its Utah presence with the acquisition of Marmalade Hill, a 71-unit apartment complex in downtown Salt Lake City for $18.6 million.
Located less than a block from US 89 and a mile from Interstate 15, the Marmalade Hill community offers easy access to all of Downtown Salt Lake City’s important employment hubs and is within walking distance to the state capitol. The apartment complex is also close to entertainment and recreational areas such as Vivint Arena, mixed-use developments City Creek Center and The Gateway, and City Creek Canyon. Marmalade Hill also is within 30 minutes of five of the most popular ski resorts in Utah.
“Salt Lake City continues to be one of the top-performing markets in the nation in terms of population growth and unemployment, which combined with a youthful demographic in its prime renting years and relative affordability, drives the Salt Lake City multifamily market into the upper echelon in the US,” says Darren Hulick, Regional VP in charge of overseeing DB Capital’s market presence in Salt Lake City and Denver.
The firm identified Salt Lake City as a key target market following its founding in 2018 and has acquired 10 communities ranging in size from 17 – 150 units throughout the metro. After successfully executing its business plan and exiting several investments, DB Capital currently manages a portfolio totaling approximately 2,200 units.
DB Capital plans an 18-month renovation program that includes updates to unit interiors, exterior, and amenities, as well as the resolution of all deferred maintenance at Marmalade Hill, which was built in 1953 and later added onto in 1972. Interior improvements will include quartz countertops in the kitchen and bathrooms, vinyl plank flooring and new carpet, new appliance packages including washers and dryers, new paint, modern plumbing and lighting fixtures throughout, and new bathroom accessories. Exterior and common area renovations will include new paint, the addition of a built-in BBQ/courtyard area, the conversion of a laundry room into a leasing office, and landscaping upgrades.
“We look forward to add value to Marmalade Hill’s excellent location through our strategic, design-driven renovation plan,” says Hulick. “The opportunity to acquire this kind of well-located asset at a significant discount to replacement cost is what really got us excited about this property.”
The property was 96 percent occupied at the time of closing. DB Capital was represented in the acquisition by Brock Zylstra and Danny Shin of Institutional Property Advisors.
About DB Capital Management
DB Capital Management (http://www.dbcap.com) is a vertically integrated real estate investment group with over $400MM in AUM based in Playa Vista, CA. DB Capital Management focuses on owning and operating multifamily property in strategically targeted submarkets across the United States. The DB Capital Management strategy revolves around a hands-on approach to acquisitions and asset management, coupled with an extensive understanding of each target investment submarket, which leads to maximum revenue generation and subsequent value.
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Legacy Capital Partners (“Legacy”), a Cleveland, OH-based national real estate investment firm and DB Capital Management (“DB”), a Los Angeles, CA-based real estate owner and operator, have acquired Summit at Salado Creek, a 1997-vintage, 352-unit apartment community in San Antonio, TX (“Salado Creek”).
Legacy and DB acquired Salado Creek as part of their value-add strategy and plan to increase value through the execution of the property’s interior renovations to a Class A finish, as well as planned upgrades to common areas and exteriors to improve the quality of the overall community for its residents. The San Antonio metro population has grown nearly 20% between the 2010 to 2020 census and is projected to continue its robust growth. The property is in a strong infill submarket with limited new development nearby and proximity to major employers including USAA, the South Texas Medical Center and Valero.
“We’re thrilled to acquire Salado Creek, which has performed well through the pandemic, and to continue enhancing resident experience through our business plan. This is Legacy’s first joint venture with DB Capital Management, and we look forward to growing the partnership,” said David St. Pierre, Managing Director at Legacy.
About Legacy Capital Partners:
Legacy Capital Partners is a real estate private equity firm founded in 2004 by Mitchell C. Schneider and David B. St. Pierre. Since its inception, Legacy has invested in 75 properties in 18 states with a total cost basis of $2.13 billion. Since October 2009 Legacy has invested exclusively in for-rent multifamily properties and is actively deploying capital out of its discretionary Funds. For more information about Legacy Capital Partners, visit www.lcp1.com.
About DB Capital Management:
DB’s mission is to be the leading multifamily investment group in each of their focus markets and always exceed clients’ expectations. DB is strategically aligned with both its property management group as well as its general contractor in order to provide transparency and accessibility on the asset management side. DB currently invests in 5 states, with approximately half of its portfolio based in Texas. For more information about DB Capital Management, visit www.dbcap.com.
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Playa Vista-based real estate investment firm DB Capital Management is increasing its attention outside of California, lining up deals in other states where it views the risk as lower. The company is on track to close $100 million worth of deals this quarter and expects to have $100 million worth of exits.
As part of this strategy, DB Capital has acquired a 150-unit property in Austin, Texas. Dubbed Laurel Woods, it’s DB Capital’s sixth acquisition in the state. The company plans to rebrand the property, which includes 12 two-story buildings, as Summit at Westwood. It is also planning upgrades.
DB Capital first entered the Austin market in 2018 and now has just under 1,000 units in the market out of the company’s roughly 2,000-unit portfolio. The firm expects to close an additional 464 units in Texas by the end of the year.
DB Capital Chief Executive Brennen Degner said the company got its start doing “smaller, value-add rent-controlled deals in Los Angeles.”
Soon, however, it switched strategies because “it got to the point where there were a lot of things that weren’t working about investing in Los Angeles,” Degner said.
“Things weren’t really favorable in L.A. from our perspective, so we started to look at other markets,” he added.
DB Capital first looked at Salt Lake City before betting big on Texas.
Now, in addition to Salt Lake City and Austin, the company is looking at other lower-cost markets with a lot of tech talent migration, such as Denver. It previously invested in Portland, Ore., as well.
“We really found our footings in these markets where we see a lot of people migrating to,” Degner said.
Development in those areas is also important.
“We really like to be in areas where we can draft off of new development and ride the wave of that rent growth,” Degner added.
The company still has assets on L.A.’s Westside that it is actively trying to sell, Degner said, adding that the company has no plans at this time to buy in L.A.
“The political landscape in California creates so many uncontrollable factors, and we like to focus on being very good at the things that we can control,” he said. “Investing in California has added layers of additional risk that are outside of our control that we can’t reflect in our underwriting.”
He expects the company will be busy elsewhere, though.
DB Capital generally holds on to assets for three to five years, but the exact time frame depends on who the company’s capital partners are for a specific asset.
Degner said the company is focused on garden-style multifamily assets.
“We’re really location focused,” he said. “We try to find old, value-add assets in areas where it’s impossible to build anywhere close to our (standards). As construction costs go up, to build garden-style, the cost has gone up considerably.”
Degner added that the company is mainly purchasing properties built in the 1980s and ’90s, and it prefers properties with 200 units.
“We want economies of scale, but it’s not so big that we compete with groups with more capital,” Degner said.
These properties are generally in the $20 million to $60 million range.
Once DB Capital acquires a property, it allocates anywhere from $3,000 to $5,000 a unit for light renovations or up to $40,000 a unit for heavy value-add properties.
Looking forward, Degner said, the company is hoping to do two deals a quarter, totaling $70 million to $100 million and will be upgrading properties as it goes.
The company, which has six employees, also partners with a Dallas-based general contractor firm and owns Playa Vista-based Skyline Management Group Inc.
Degner said he has no plans to take the company away from apartment rentals, however.
“We’re going to keep heading down the same path,” he said. “Multifamily has been a very good asset class for us, and I don’t think it’s going anywhere. I’m a big proponent of trying to stay in your lane.”
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DB Capital has acquired Layton, Utah-based Twin Trees Apartments, a multifamily community. No financial terms were disclosed.
Multifamily Investment firm DB Capital Management added to its growing footprint in Utah with its acquisition of Twin Trees Apartments, a 43-unit multifamily community located in Layton, UT, approximately 20 minutes north of Downtown Salt Lake City.
DB Capital Management’s investment strategy is focused on secondary and tertiary markets exhibiting strong multifamily fundamentals. Located in Davis County, Layton is a thriving community in the heart of Northern Utah that USA Today ranked tenth on its list of America’s Best Cities to Live. The market’s low cost of living and growing job market has resulted in impressive population growth creating strong demand for quality rental housing and Q2 2021 year-over-year rent growth of 14.1 percent ranking highest in the state.
With the acquisition of Twin Trees and the recent sale three Salt Lake City properties, DB Capital’s portfolio in Utah now totals approximately 300 units and includes properties in Salt Lake City, Provo and now Layton.
The firm’s reputation for being a closer in this market has been a key factor in winning deals, especially in an ultra-competitive state like Utah, according to DB Capital Vice President Darren Hulick.
“We’re using our extensive network of contacts and relationships to help us unearth investment opportunities like Twin Trees which we were able to secure through an existing relationship,” said Hulick. “We will continue to build scale in targeted markets within the state with a goal of increasing our holdings to approximately 1,000 units.”
Built in 1997, the property, which will be rebranded as Summit at Layton, is made up almost entirely of three-bedroom townhome-style units. DB Capital plans a capital improvement program that will enhance the building exterior, unit interiors and community amenities.
About DB Capital Management DB Capital Management (http://www.dbcap.com) is a vertically integrated real estate investment group based in Playa Vista, CA. DB Capital Management focuses on owning and operating quality multifamily properties in strategically targeted submarkets across the United States.
The DB Capital Management strategy revolves around a hands-on approach to acquisitions and asset management, coupled with an extensive understanding of each target investment submarket, which leads to maximum revenue generation and subsequent value.