Crowdstreet has made a final call for investments on its offering for the Paloma San Antonio, a class-A multifamily development in one of America’s hottest real estate markets. According to real estate data firm Co-star, San Antonio is experiencing the fastest population growth of any city in America. By their estimate, San Antonio is growing at over double the national average, making it one of America’s most popular sunbelt destinations.
The project sponsors, Right Quest, have a fully entitled right to construct the Paloma on a prime 13 acre plot within minutes of the 10 freeway. Paloma itself is a master-planned community just East of San Antonio. The Paloma San Antonio is the only class-A apartment community approved to be built there. The current apartment shortage and average annual income of over $90k means there is significant demand for quality multi-family housing in the area.
The project sponsors are seeking to raise $11,500,000 in investor contributions, which they will combine with their own capital and a loan to build this project. The projected per-unit price of approximately $180,000/unit leaves significant profit potential for the Paloma, which the sponsors expect to sell for $235,00/per unit at the end of the hold period.
This projected sale price is based on a recent appraisal of a similar multifamily property that is valued at $237,500/unit. In addition to The Paloma’s easy freeway access, residents will be conveniently located near some of San Antonio’s biggest employers in both the healthcare and educational sectors. Additionally, the U.S. military employs thousands more people at Joint Base San Antonio Randolph.
- Minimum investment: $25,000
- Projected hold period: 3 Years
- Projected internal rate of return (IRR): 20.4%
- Projected average cash yield: 4.4%
- Projected equity multiple: 1.7x
Interested investors must submit offers by June 28, 2022 and fund them by June 30th, 2022. Distributions are scheduled to begin in the 4th quarter of 2024. The offering is not open to contributions from self-directed individual retirement account holders.
About the Project Sponsor
RightQuest is a Texas-based real estate development and management company. Although they have broad experience across the real estate sector, RightQuest focuses on the strategic redevelopment of undermanaged assets and building new developments from the ground up. The Paloma San Antonio will be their 3rd offering on the Crowdstreet platform.
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