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.
