Arbor Lends $61M on 720-Unit Multifamily Asset in San Antonio
River Rock Capital has inked $60.5 million of acquisition financing for the purchase of a multifamily property in San Antonio, Commercial Observer has learned.
Arbor Realty Trust provided the bridge loan for River Rock to acquire Sterling at Castle Hills, a 25-acre apartment development, sources told CO. The debt package was structured as a 76 percent loan-to-cost with River Rock planning to invest in significant capital improvements with the new infusion.
Meridian Capital Group arranged the transaction with a team led by Judah Hammer and Daniel Neiss, who are both based in the company’s Manhattan headquarters.
Details on the acquisition price and seller could not be immediately gleaned.
Located at 1700 Jackson Keller Road, Sterling at Castle Hills features 720 units and 1,100 parking spaces. River Rock is planning to make extensive upgrades to the apartments and the community grounds with the goal of turning the site into one of the most high-end properties in the San Antonio market.
“The acquisition of this asset presents an extremely rare opportunity to acquire a property with significant upside potential, which in combination with experienced sponsorship and management, will allow it to become a market-leading asset over the next 24 to 36 months,” Hammer said in a statement.
Officials for Arbor and River Rock did not immediately return requests for comment.
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