7207 Snowden Road, LLC

Available for §1031 exchange & llc investment

Offering Price: $24,710,000

Price Per Unit: $58,005

  • Purchase Date: 3rd Quarter 2008
  • Offering LTV: 49.98%
  • Offering Price Cap Rate: 6.14%
  • 1st Year Cash Flow: 6.11%

7207 Snowden Road is a 426-unit garden-style apartment community in San Antonio, Texas. The approximately 16-acre property consists of 30 three-story residential buildings, a leasing/fitness center and a cabana clubroom.

Available for §1031 Exchange & LLC 

The property is located in the Far Northwest submarket, which is expected to have an estimated vacancy rate of 5.1 percent as of first quarter of 2008 compared to 6.9 percent for the market overall.

Property Highlights

  • As of July 18, 2008, the property was approximately 91 percent occupied and the manager believes that occupancy rates will remain stable during the holding period.
  • The manager has set aside $2,700,000 with the lender for repairs, maintenance and completion of interior and exterior upgrades.
  • The manager believes that as leases renew or turn, higher rents will be achieved due to budgeted upgrades to the property’s interiors, exteriors and amenities, making it more competitive in the submarket.
  • The property is favorably located in San Antonio, an area with a population of approximately 1.3 million, and accessible to Interstate 10 and loop 410.
  • The South Texas Medical Center is less than one mile from the property. With a campus that spans more than 900 acres, the South Texas Medical Center is a conglomerate of 12 major hospitals, 45 clinics, three higher education institutions (including the University of Texas Health & Science Center), and a number of research centers.

TIC Offering

  • Offering Size: $12,360,000
  • Price per 1% Ownership: $123,600 equity and $123,500 assumed debt
  • Minimum Investment per SPE: 3.00% = $370,800 equity and $370,500assumed debt for a total purchase price of $741,300
  • Suitability: Accredited investors only

LLC Offering

  • Offering Size: $618,000
  • Price Per Unit: $5,000
  • Minimum Investment: $25,000
  • Suitability: Accredited investors only

Business Plan

  • Preserve the capital investment.
  • Realize income through the acquisition, operation and sale of the property.
  • Make monthly distributions, which may be partially tax-deferred as a result of depreciation and amortization expenses.
  • Within approximately seven years, profitably sell the property based on the value added through effective management and operation of the property.
  • There is no guarantee that the business plan will be successfully executed, that the property’s value will be enhanced, or that the property will be sold within the planned time period.
  • There can be no assurances that the property manager will be able to renew expiring leases or lease vacant spaces in the property.

UNIT AMENITIES

  • Fully-equipped all electric kitchens with frost-freerefrigerators, double stainless sinks, pantries andserving bars
  • Separate dining areas
  • Vaulted ceilings*
  • Wood burning fireplaces
  • Ceiling fans
  • Full-size or stackable washer/dryer connections
  • Walk-in closets 
  • Bedrooms with studies*
  • Skylights*
  • Built-in bookshelves*
  • Linen closets
  • French doors
  • Private patios or balconies with outdoor storage

Community Amenities

  • Leasing Center
  • Indoor pool and fitness center with private men’s and women’s locker rooms with showers, sauna and jacuzzi
  • Cabana clubhouse
  • Sand volleyball court
  • Elevator access*

*Select Units

Points to Consider

  • There can be no assurances that the property manager will be able to renew expiring leases or lease vacant spaces in the property.
  • Competition from apartment communities in the surrounding geographic area could impact rental rates and the ultimate value of the property.

Location Information

San Antonio is the second most populous city in Texas and the seventh most populous city in the United States. Named for the Saint Anthony of Padua, the city was founded in 1718 when a Spanish expedition from Mexico established a mission that would later be known as the Alamo. San Antonio has a diversified economy with four primary focuses: financial services, healthcare, national defense, and tourism. San Antonio is also the industrial, commercial, and financial center of a large agricultural area, with a leading livestock center and one of the largest produce exchange markets in the nation.

Apartment Market

  • According to the Reis Observer report published April 4, 2008, “the fluid 139,134-unit San Antonio apartment market continues to be strong and balanced, with low construction costs and plenty of available land. New supply and rapid population growth provide steady demand, any imbalances are corrected quickly.”
  • The property is located in the Far Northwest submarket, which is expected to have an estimated vacancy rate of 5.1 percent as of first quarter of 2008 compared to 6.9 percent for the market overall.

ABOUT Grubb & Ellis

Grubb & Ellis Realty Investors, LLC is the real estate investment and asset management subsidiary of Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm. Grubb & Ellis Realty Investors and affiliates manage a growing portfolio of assets valued in excess of $6.1 billion located throughout 30 states. One of the nation’s most active buyers and sellers of commercial real estate, Grubb & Ellis Realty Investors has completed acquisition and disposition volume totaling approximately $10.4 billion on behalf of program investors since its founding in 1998; more than 70 percent of this volume has been transacted since January 1, 2005.

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