Steele Properties, in partnership with San Antonio Housing Trust, announced the $21.3 million acquisition and rehabilitation of Pan American Apartments, a 100-unit project-based Section 8 family complex in San Antonio.
The deal marks the Denver-based national real estate investment and development company’s first acquisition in San Antonio and the 16th property in Steele’s Texas portfolio. Monroe Group, Steele’s sister company, will oversee property management at the project.
Pan American will receive over $73,000 per unit in hard cost renovations as part of the acquisition. The scope of the rehabilitation is extensive, encompassing both exterior and interior work, according to company officials. Building improvements include new roofs, paint, new central heating and air conditioning systems, sewer repair, and major plumbing and electrical upgrades. Project upgrades include parking lot paving, sidewalk repair, new LED lighting, and new safety gates at the entrance with new perimeter fencing. In addition, the community room, the management office, and laundry room will be upgraded, and there will be four new playgrounds, picnic tables, and bike racks.
Renovated apartment units will receive updated kitchens with new appliances, cabinets, and countertops; bathrooms with new vanities, toilets, and tub surrounds; new wood plank flooring; new interior doors and windows; new fixtures; new underground plumbing repair; and central air conditioning.
This project is financed with 4% low-income housing tax credits allocated by the Texas Department of Housing and Community Affairs (TDHCA), tax-exempt bonds issued by San Antonio Housing Trust Finance Corp., permanent and construction financing provided by KeyBank, and tax credit equity provided by National Equity Fund (NEF).
“As our nation faces an unprecedented public health crisis, we remain focused on preserving much-needed affordable housing for our most vulnerable citizens. In partnership with San Antonio Housing Trust, Steele Properties is thrilled to preserve and enhance 100 affordable apartment homes in San Antonio. We thank our other partners, the Department of Housing and Urban Development, TDHCA, NEF, and KeyBank that share our commitment to ensuring everyone has access to safe, comfortable and quality housing they can afford,” said Chad Asarch, principal, Steele Properties.
Steele said it continues to work with its contractors to ensure that the rehabilitation complies with the latest Centers for Disease Control and Prevention guidelines for preventing person-to-person transmission of COVID-19 as well as all emergency state and federal executive orders.
Built in 1968, Pan American Apartments consists of 17 two-story buildings with one-, two- and three-bedroom apartment homes on 9.57 acres. The open breezeways provide residents with exterior entrances to each apartment. The property features an on-site daycare facility.