Property Details
Below Market Rents  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

Silver Creek Apartments

San Antonio, TX

Multi-Family Property

This deal is oversubscribed

Join Wait-List
Sterling Real Estate Partners Phoenix, AZ
Sterling Real Estate Partners
  • IRR 16.53%
  • Equity Multiple 1.68x
  • Hold Period 5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 6.21%
  • Stabilized Cash on Cash 13.42% in Y3
  • First Distribution Oct 2021
  • Distribution Frequency Quarterly
  • Asset Profile Value Add
  • Loan-to-Value 71.43%
  • Current Occupancy 100%

About this Property

"Silver Creek Apartments is a 1983 vintage, 160-unit Class B apartment complex in the Medical Center Neighborhood of San Antonio."

-David Zeff, Sterling Real Estate Partners

 

Address 4822 Gus Eckert
Square Footage 106,192 sq. ft.
# of Units 160
Year Built 1983
Current Occupancy 100%
Current Average Rents $761
Average Market Rents $951
Purchase Price $11,900,000
Price/Sq. Ft. $111/Sq. Ft.

Top Questions

All answers are provided by the sponsor, Sterling Real Estate Partners, or its representatives.

 

Why are you buying this property?

David Zeff, Sterling Real Estate Partners: "Sterling is acquiring a very well maintained asset at a 15% discount to recent sales in the market. The asset is 100% occupied with rents well below comparable properties."

 

What are the most important aspects of this investment opportunity for the investors?

David Zeff, Sterling Real Estate Partners:

  • "Favorable Price Point: The asset was sourced off market at a 15% discount to recent comparable transactions."
  • "Below Market Rents / Conservative Underwriting: Rents are some of the lowest in the submarket and through some limited exterior renovations rents can be pushed $66 / mo or 8.7% over average in place rents and still be $50-100 / mo below the neighboring comps."
  • "Proximity Demand Drivers: Silver Creek benefits from its infill positioning just off Fredericksburg Rd. across from the USAA headquarters which has 19,000 employees, the South Texas Medical center is 1.4 miles away and employs 100,000. The community is located near the intersection of IH10 and Loop 410 which provides residents immediate access to San Antonio's large and diverse economic drivers including the UTSA, San Antonio International Airport and Downtown San Antonio."
  •  

    What is your investment strategy/business plan?

    David Zeff, Sterling Real Estate Partners: "The business plan is to address the exterior needs of the property and focus on the highest ROI projects. Keeping rents affordable reduces the risk profile of the investment, keeping the basis low creates a favorable exit scenario in which the next buyer will pay a compressed cap rate for the value-add opportunity."

     

    How has COVID-19 impacted your business plan?

    David Zeff, Sterling Real Estate Partners: "It is important not to over improve the property in this environment. There is always a market for low rent. The business plan is to maintain rents in the bottom third of the neighboring properties comp set and generate solid returns. A future value add strategy is still on the table for next buyer."

     

    What are the risks and how are you mitigating those risks?

    David Zeff, Sterling Real Estate Partners: "The main risk is a double dip recession and resulting pressure on rents and occupancy. The risk is mitigated by 1) a low loan-to-value debt structure with over 2.0x debt coverage ratio; 2) positioning the property with low rents in the bottom third of the comp set; and 3) maintain a low cost basis by reducing capital exposure and maintaining the exterior physical appearance of the asset and not undertaking a $8,000 per unit renovation of unit interiors"

    NOTE: All answers provided by the sponsor, Sterling Real Estate Partners, or its representatives.

About this Property

"Silver Creek Apartments is a 1983 vintage, 160-unit Class B apartment complex in the Medical Center Neighborhood of San Antonio."

-David Zeff, Sterling Real Estate Partners

 

Address 4822 Gus Eckert
Square Footage 106,192 sq. ft.
# of Units 160
Year Built 1983
Current Occupancy 100%
Current Average Rents $761
Average Market Rents $951
Purchase Price $11,900,000
Price/Sq. Ft. $111/Sq. Ft.

Top Questions

All answers are provided by the sponsor, Sterling Real Estate Partners, or its representatives.

 

Why are you buying this property?

David Zeff, Sterling Real Estate Partners: "Sterling is acquiring a very well maintained asset at a 15% discount to recent sales in the market. The asset is 100% occupied with rents well below comparable properties."

 

What are the most important aspects of this investment opportunity for the investors?

David Zeff, Sterling Real Estate Partners:

  • "Favorable Price Point: The asset was sourced off market at a 15% discount to recent comparable transactions."
  • "Below Market Rents / Conservative Underwriting: Rents are some of the lowest in the submarket and through some limited exterior renovations rents can be pushed $66 / mo or 8.7% over average in place rents and still be $50-100 / mo below the neighboring comps."
  • "Proximity Demand Drivers: Silver Creek benefits from its infill positioning just off Fredericksburg Rd. across from the USAA headquarters which has 19,000 employees, the South Texas Medical center is 1.4 miles away and employs 100,000. The community is located near the intersection of IH10 and Loop 410 which provides residents immediate access to San Antonio's large and diverse economic drivers including the UTSA, San Antonio International Airport and Downtown San Antonio."
  •  

    What is your investment strategy/business plan?

    David Zeff, Sterling Real Estate Partners: "The business plan is to address the exterior needs of the property and focus on the highest ROI projects. Keeping rents affordable reduces the risk profile of the investment, keeping the basis low creates a favorable exit scenario in which the next buyer will pay a compressed cap rate for the value-add opportunity."

     

    How has COVID-19 impacted your business plan?

    David Zeff, Sterling Real Estate Partners: "It is important not to over improve the property in this environment. There is always a market for low rent. The business plan is to maintain rents in the bottom third of the neighboring properties comp set and generate solid returns. A future value add strategy is still on the table for next buyer."

     

    What are the risks and how are you mitigating those risks?

    David Zeff, Sterling Real Estate Partners: "The main risk is a double dip recession and resulting pressure on rents and occupancy. The risk is mitigated by 1) a low loan-to-value debt structure with over 2.0x debt coverage ratio; 2) positioning the property with low rents in the bottom third of the comp set; and 3) maintain a low cost basis by reducing capital exposure and maintaining the exterior physical appearance of the asset and not undertaking a $8,000 per unit renovation of unit interiors"

    NOTE: All answers provided by the sponsor, Sterling Real Estate Partners, or its representatives.

Offered By

Login or Register to See More Details

Available to Registered Users

  • Get to know the sponsor behind the offering with key information
  • See an overview of their experience and success
  • Understand their investment strategies
  • Easy access to contact the sponsor directly to learn more
Assets Under
Management

Currently
$118.5MM less than 10 assets
Exited
$187MM 10+ assets
Portfolio LTV
60%  
Historical
Realized Returns

Total IRR
27.7%  
Equity Multiple
1.6x  
Annual Cash
N/R  
Years Of
Experience

As Principals
15+ years  
In Business
6 years  
Size
6 Staff  
* All information is reported by Sterling Real Estate Partners as of 1/7/2021.
Assets Under
Management

Currently
$118.5MM less than 10 assets
Exited
$187MM 10+ assets
Portfolio LTV
60%  
Historical
Returns

Total IRR
27.7%  
Equity Multiple
1.6x  
Annual Cash
N/R  
Years Of
Experience

As Principals
15+ years  
In Business
6 years  
Size
6 Staff  
* All information is reported by Sterling Real Estate Partners as of 1/7/2021.

Financials

Login or Register to View Financials

Available to Accredited Investors:

  • Get an overview of important financial details to make a smarter investment
  • Analyze the financial pro forma to see how projected returns are distributed over time
  • Review source and uses and other important details
Offering Financial

Sponsor Diligence Report

Login or Register to View Report

Available to Accredited Investors:

  • View principal experience
  • Review background check results
  • Track record verification
Diligence Preview

Location Details

San Antonio, TX

David Zeff, Sterling Real Estate Partners: "Silver Creek benefits from its infill positioning just off Fredericksburg Rd. across from the USAA headquarters which has 19,000 employees, the South Texas Medical center is 1.4 miles away and employs 100,000. The community is located near the intersection of IH10 and Loop 410 as the community provides residents immediate access to San Antonio's large and diverse economic drivers including the UTSA, San Antonio International Airport and Downtown San Antonio."

Documents

Login or Register to View Documents

Available to Accredited Investors:

  • View, download, and print the offering PPM (Private Placement Memorandum)
  • View, download, and print the detailed financial projections
  • Access all of the important documents for this offering in one place
Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

Send Sterling Real Estate Partners and/or RealCrowd a message. If you have a question about this offering ask Sterling Real Estate Partners. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

Please resolve the captcha and submit.

We'll get back to you soon!

In the meantime, you can create an account to view detailed information about Silver Creek Apartments.

In the meantime, please review the offering documents and financials.

Sign Up for our free 6 week course on the fundamentals of commercial real estate investing.