Old Three Hundred Capital secures $47.3M in acquisition financing for multi-housing community in San Antonio

NEW YORK, July 7, 2022 – JLL Capital Markets announced that it has arranged $47.3 million in acquisition financing and secured the preferred equity for Lantower Alamo Heights, a 312-unit multi-housing community located in the Alamo Heights neighborhood of San Antonio, Texas.

JLL worked on behalf of Austin-based sponsor, Old Three Hundred Capital, to arrange its second transaction with Sound Mark Partners this year. Additionally, JLL secured a non-recourse, floating-rate acquisition loan through Prime Finance on behalf of the partnership. JLL has now financed a total of approximately 1,800 units for Old Three Hundred Capital in the last 18 months.

Built in 2015, Lantower Alamo Heights totals 312 one-, two- and three-bedroom units. The property features 259,951 rentable square feet and was 93 percent occupied at acquisition. The highly amenitized, exclusive complex features a conference/meeting room, courtyard, dog park, pet wash station, elevator access, fire pit, fitness center, game room, outdoor living and grill area, parking garage, resort style pool and pet-friendly community.

Located at 327 W Sunset Rd., the apartments are situated in one of the top neighborhoods in San Antonio with its own independent, private school district and median home prices averaging $1 million. Close to the popular Pearl District and downtown San Antonio, the property offers residents plentiful access to greenspaces and excellent “A+ Rated” schools, upscale eateries and a high barrier to new construction, which make this an uncommon asset in San Antonio.

Lantower Alamo Heights offers Old Three Hundred Capital a unique opportunity to gain exposure to a top San Antonio submarket with limited supply and proximity to multiple strong economic drivers.

The JLL Capital Markets Debt Advisory team representing the borrower was led by Senior Director Marko Kazanjian, Managing Director Chris McColpin, Senior Managing Director Max Herzog and Associate Andrew Cohen out of the New York City and Austin offices.

“We couldn’t be more excited for the continued relationship we are growing with Old Three Hundred Capital. Having closed this acquisition with both Soundmark Partners and Prime marks our second transaction with both parties proving the successful business plans OTH is implementing for next generation living,” said Kazanjian.

“Alamo Heights represents the acquisition of another Class A property for our portfolio, and in one of the best school districts and highest income submarkets of San Antonio," said OTH Capital Managing Partner William Gottfried. "San Antonio is growing and maturing into a major American city, and we will continue to acquire best-in-class assets in the city’s best neighborhoods. To be able to partner with both Sound Mark and Prime again made the acquisition process seamless. I extend our sincere thanks to Marko and the JLL team for another great transaction.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Old Three Hundred Capital ("OTH”) is an Austin, TX based real estate private equity company, focused primarily on multi-family value-add assets. Founded in 2014, OTH is a fully vertically integrated operator, handling asset management, construction management and property management in-house. To-date, OTH has acquired more than 80 multi-family properties in Central Texas and seen more than 70 through to sale. The firm currently has $380,000,000 in assets under management and is actively looking for new joint venture partnerships.

Sound Mark Partners LLC (“Sound Mark” or the “Firm”) is a women-owned and led commercial real estate specialist investment firm. The Firm was established in 2013 as a team lift-out from CBRE Group. Led by Jenna Gerstenlauer, former Chief Investment Officer of CBRE Capital Partners and a 25-year commercial real estate veteran, the Sound Mark team has been investing together for over 10 years. The Firm targets smaller deal sizes in high-growth primary and secondary US locations, and emphasizes areas designated as Innovation Districts. To learn more, visit soundmarkpartners.com.

Prime Finance has originated hundreds of loans totaling over $15 billion since their founding in 2008. Prime focuses on floating rate, non-recourse bridge loans ranging from $15 to $200+ million. Origination teams in San Francisco, Chicago and New York provide financing solutions in all markets across the US for a broad range of property types, including office, multifamily, industrial, hospitality, retail, student housing, among others. The Prime Finance team is results oriented, responsive, and creative. Their experienced originators tailor each loan to meet borrowers’ needs and post-closing, loans are managed by Prime’s in-house team.