Dallas, Texas-based developer JMJ Development, led by principal Tim Barton, is planning to build a 30-story residential high-rise in supply-constrained San Antonio. Villita Tower will contain 201 market rate units overlooking San Antonio’s iconic River Walk on the San Antonio River.
Colliers International’s structured finance team of Jeffrey Donnelly and Ulrike Ahrens has been retained to source $47 million in debt and equity for the project.
“In assessing projects, clients often talk about so-called “in-fill” locations all the time,” said Donnelly. “Rarely do we encounter a site as rare and compelling as Villita Tower. Right at San Antonio’s iconic River Walk on the San Antonio River, the tower will have commanding views of the downtown cityscape. Restaurants and a strong amenity offering will make this an unbeatable proposition. This will be the ‘it’ residence in all of downtown San Antonio. It’s a tremendously exciting project. We are confident the project’s 201 units will lease up immediately.”
Donnelly expects the financing to be finalized by the second quarter of 2016. He said that so far, plans have gotten a strong response in the debt and equity markets, given the project’s strong pro forma, San Antonio’s solid reputation among bank balance sheet lenders and insurance companies, as well as healthy multifamily market conditions.
San Antonio is the 7th largest city in the United States, and like the other major Texas MSAs, has been putting up strong numbers in job growth, ranking 10th fastest nationwide in jobs growth at 3.2 percent this past year. San Antonio unemployment sits at only 3.9 percent. San Antonio’s growth has been fueled by the biosciences, healthcare, aerospace, information technologies, and green technologies, and is therefore not closely linked to the performance of oil prices.