Key data

Project name
Park at Stone Oak

Location
Stone Oak Parkway, San Antonio, Texas, USA

Initiator
REALIANCE USA B.V.

Local partner
GenCap Partners, LLC (GenCap)

Category
Development of 332 sustainable ‘Class A+ gardenstyle’- rental apartments

Expected investment term
Four years

Exit strategy
Sale to an (end) investor or restructuring as ‘core’ investment

Total investment (pre-development)
US$ 67,265,274

Bank loan
US$ 38,891,008

Equity Stone Oak (German) Capital LP  US$ 20,979,704
Participation in Project LP  US$ 20,574,266
Costs Capital LP US$  405,438
of which:
Stone Oak Capital LP     US$ 19,479,704
Stone Oak German Capital LP  US$ 1,500,000
The amounts may vary upon closing

Structure
Participation directly or through separate LLC (for corporates) in Stone Oak Capital LP

Participation
From US$ 125,000 (60 participations) excluding 3% emission costs

Projected gross total return
56.8% after four years

Projected gross return (ROI)
14.2% per jaar (ROI)

Unique selling points

San Antonio, one of the growth centers of Texas, is a metroplex with  approximately  2.5  million  inhabitants.  This  city  has  an  economic  dynamic  with  low  taxes  as  well  as  an  attractive  living  climate  and has a consistently high population and  employment  growth  as  well  as  low  unemployment  in  recent  years,  resulting  in  an  increasing  demand  for  rental  apartments.

Park  at  Stone  Oak’s  location  is  in  the  rolling  hills  of  affluent  and fast-growing North San Antonio. It is a stone’s throw from employment  centers,  retail  and  schools.

The  land  plot  has  already  been  contracted  in  2018  at  an  attractive   land   price   including   pre-financing   interest   of   approximately US$ 18,000 per apartment.

The complex consist of 33 sustainable ‘Class A+’ apartments, built  with a mix of studios, 1-bedroom,  2-bedroom and 4-bedroom apartments, which allows a broad target group of tenants to be served.

For  sale/restructuring, an exit cap rate of 4.5 is used for Park at Stone Oak, which is approximately  0.5% higher than the current market cap rate. The development cap rate of 6.2%.

For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl.