Behind the Deal: Embrey Springs Apartments

The first and only multifamily project in the Dominion neighborhood—on the Northwest side of San Antonio—is underway. Embrey Partners development EVP Jeff Booth gave us the lowdown on what it took to make the project happen.

Embrey Partners started construction on a 15-acre, 320-unit upscale multifamily project. Jeff tells us it's part of a larger, mixed-use development that will front I-10 between Leon Creek and historic Leon Springs. Because of the rocky terrain, cost of grading, site work, and utility installations are much higher in the hill country, he says. There are a number of other deterrents, too, including the location within the Edwards Aquifer recharging and contributing zones. (If the 14,067-foot Mount Missouri wasn't enough to deter Jeff—this pic is from last summer—we don't think anything will.) It's more costly to develop there, he says, with multiple ordinances and regulations to follow, but the beauty attracts a higher-end demographic.

The barriers to entry drive up costs, including having a military installation (that's about 25,000 acres) taking up what could have been developable land, Jeff tells us. To offset the costs, Jeff says Embrey focuses on trying to locate properties with the best access to employment, shopping, or unique surburban sites that attract the demographics that will pay for the living environment. The garden-style community will feature two buildings flanking the amenity complex with elevator service to cater to the empty-nesters. (To truly cater to them, the elevators should only go down, so their kids can't come back to live there.)

The development is a JV of Embrey, Case Pomeroy Properties, and Leon Creek. First occupancy is scheduled for February 2015. Financing comes from JP Morgan. Jeff tells us he generally climbs one or two fourteeners in Colorado every year. Here he's with Wells Fargo's Nipul Patel, Building and Land Technology's Chris Overberg, Embrey's Mike Elder, Stonelake Capital Partners John Kiltz, Jeff, Nationwide Insurance's Matt Mahaffey, and Apartment Realty Advisors Doug Andrews.

Three Things San Antonio Likes to Buy

San Antonio's economy hasn't had the peaks and valleys that plagued other big cities, says The Weitzman Group VP Marcus Shaffer. Here's three areas he predicts will continue to shine.

1) Restaurants galore

From national chains to regional restaurants and the mom-n-pop places, eating joints are going gangbusters, Marcus says. The 1,400 to 3,000 SF spaces are seeing local pizza shops, and second generation takeovers of old Quizno spaces, he says. Fried chicken is all the rage with Popeye's, Bush's, Raising Cane's (our favorite is their Cane's sauce), and Chick-fil-A restaurants opening all over town. 54th Street Grille has opened multiple pad sites and Zoe's opened two locations and has another on the way in North Central San Antonio.

2) Grocers like Walmart & H-E-B

The San Antonio-based H-E-B has always been the big player, but lately Walmart has opened multiple new supercenter locations in a head-to-head challenge. (Round one: Who's got the fastest baggers?) In communities where H-E-B was the only game in town, Walmart has made a big move building large format stores from the ground up and is rolling out the smaller Walmart Neighborhood Market concept this year.

3) Medical on the go

The medical service sector from urgent care clinics to dental offices are incredibly active in the retail environment. It's all about convenience and identity. That storefront presence can create brand awareness. Marcus has been part of the roll-out team for California-based dental chain, Western Dental (which is converting its name to Brident Dental). The chain is active across all major Texas markets with multiple deals in the works, he says.

Downtown San Antonio's Filling Up

It's very unlikely we'll see more Class-A office built in Downtown San Antonio, says Transwestern executive managing director Larry Mendez, but rents are leaping and he expects occupancy will stay strong. Larry represents IBC Centre (370k SF) and Bank of America Plaza (540k SF): Three years ago, one was empty and the other was 60% full. Now, both are over 90% occupied. Most recently, he completed an 11k SF lease to Silver Spring in Bank of America. Plus, he tells us he's got two more deals working Downtown, each larger than Silver Spring. In fact, for the first time, he's seeing groups who are considering Downtown exclusively. He's pictured with VP Amber Austin.

Who's the Best Golfer?

All week, we've been looking out our window longingly. Some of you were smart enough to take up golf and "work" from the course, and we want to hear all about it. We're compiling a list of Austin and San Antonio real estate's best golfers. Nominate yourself or a friend by emailing Tonie Auer (tonie@bisnow.com) or Catie Dixon (catie@bisnow.com).