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%.