SAN MARCOS, TX – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired The Villagio Apartments, a 180-unit, 492-bed luxury student housing community near Texas State University (TSU) in San Marcos, Texas. 29SC’s strategy is to invest $2 million to significantly upgrade the apartment interiors, exteriors and already top-tier amenities.
“The Villagio represents the first step in the exciting expansion of 29SC’s very successful multifamily business model into its newly-formed student housing platform,” said John Price, Ph.D., Senior Vice President with 29th Street. “This acquisition represents a unique opportunity to add value for both our investors and the residents through repositioning and substantial renovating the community. Upon completion, The Villagio will provide the highest quality student housing experience in the competitive San Marcos market.”
Texas State is one of the fastest-growing universities in the country, with record enrollment growth for 18 straight years. The fourth largest university in Texas with over 38,000 students, TSU is well-located on the I-35 corridor between Austin and San Antonio - two of the fastest-growing metropolitan areas in the country.
Developed in 2005, The Villagio offers students two-, three-, and four-bedroom fully furnished apartments. Each unit has a bathroom for every bedroom, private patios and a full-size washer and dryer. Highly sought-after amenities include a resort-style pool with fountains and hot tub, outdoor grilling areas, 24-hour fitness center, clubhouse, private study center, movie theater and volleyball and basketball courts. The Villagio is on the Texas State bus route.
29SC plans to invest just over $2 million ($4,100 per bedroom) in capital improvements. Interior renovations will include new faux hardwood vinyl flooring, granite countertops, kitchen backsplashes, upgraded lighting and plumbing fixtures, new paint schemes and more. Plans also include greatly enhancing the amenities, including the expansion of the fitness center and adding new state-of-the-art exercise and spin equipment, as well as updating the exteriors.
The community is 100% pre-leased for the upcoming academic year. The bulk of the capital improvements will begin immediately, with future phases planned during school breaks. The address is 1850 Aquarena Springs Drive. The transaction closed June 30th. The dollar value of the acquisition was not disclosed.
29th Street Capital has acquired 11 multifamily assets over the past 12 months, placing well over $50 million of equity in markets including Houston, Texas; Denver, Colorado; Durham, North Carolina; Chicago, Illinois; and Oakland, California. 29SC continues to pursue value-add multifamily properties which fall below the institutional radar. The push into a strengthening student housing market provides yet another strategy to continue to offer its investors above-market returns.
Formed in 2009, 29SC is a privately-held real estate investment and advisory firm that employs a value-added investment strategy on properties that are below the radar of institutional peers. 29SC’s current portfolio consists of over 6,000 units and it has acquired over 7,400 units across its 10 offices in the U.S. Investments typically require approximately $2 to $10 million of equity per deal, and involve the acquisition or recapitalization of real estate assets, portfolios or platforms. Learn more about 29SC at www.29thstreetcapital.com.