Boerne Livin

3 Shooting Club Rd, Boerne, Texas
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Investment summary

Number of Units162

Occupancy90%

Year Built2021

Avg. Unit Size935

Avg. Rent/Unit$1,487

Avg. Rent/SF$1.59

Executive summary

BWE Investment Sales LLC (BWE) is pleased to offer the exclusive opportunity to acquire the Special Limited Partnership (SLP) interest that owns Boerne LIVIN, a newly built 162-unit senior 62+ mixed income property near San Antonio, Texas. The property provides an active-adult community along with top of the line amenities, including plush in-unit finish outs like chef-inspired kitchens with granite countertops, pendant and recessed lighting, and wood-style flooring. Located in Boerne, the property sits near the intersection of N. Main Street and I-10 with ease of access to the rest of Boerne and the plethora of nearby restaurants, retail, and grocery stores. The property has a 100% real estate tax exemption via a Public Facility Corporation (PFC) structure where the land is owned by the Boerne Public Facility Corporation and the improvements are leased back to the Partnership. The recently converted HUD D4 loan removes interest rate risk by providing a super attractive 4.48% interest rate. The newly constructed asset eliminates construction risk, material shortages and delays, and lease-up risk most new developments have experienced since the Covid pandemic. In addition, Boerne’s Area Median Income (AMI) increased 19.61% in 2023 and the San Antonio/New Braunfels, TX MSA led the nation in population growth in 2023. This is a unique opportunity to acquire a controlling interest in a stabilized mixed-income property with extremely attractive in-place investment fundamentals.

Bang Realty-Texas Inc | License No. 701472

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Investment highlights

Organic Rent Growth Opportunity:

Kendall County’s Area Median Income (AMI) increased 19.61% in 2023 and is the highest in Texas at $135,400. Due to the HUD Cap of 5.9% in 2023, Boerne LIVIN could theorically capture another 13.71% in rent growth even with no AMI increase in 2024 (HUD Cap for 2024 is 10%).

Location:

Nestled just off Hwy 10 in a rapidly expanding market, Boerne presents a blend of small-town charm with benefit of being located close to San Antonio, the 7th largest city in the United States. Residents can take advantage of San Antonio’s world-class medical facilities, historic landmarks, other attractions. Boerne boasts an array of restaurants, retail shops, grocery stores, and access to nature.

Strong Market:

Boerne has experienced consistent population growth over the years, driven by its reputation as a desirable place to live. Kendall County is the 11th fastest growing county in Texas. It is projected that Kendall County will see 21% population growth over the next 5 years.

Attractive In-Place Financing:

The property has a HUD 221 D4 fully amortizing loan that has a well below current market 4.48% interest rate. Stepping into the partnership removes interest rate risk that so many new projects are experiencing.

Significant Discount To Replacement Cost:

With skyrocketing construction cost, interest rate volatility, and suppy constraints, a new owner will benefit from a cost basis significantly below replacement cost.

100% Real Estate Tax Exemption:

Due to the unique Texas Public Facility Corporation (PFC) structure, Boerne LIVIN protects a new owner from a burdensome real estate tax expense and future reassessment risk.

Attractive Partnership Structure:

There is more than $2 million of deferred developer fee and $390k in annual incentive supervisory fee available for the incoming SLP.

Community Amenities

  • Great location off Hwy 10
  • Close proximity to downtown San Antonio
  • Nestled in a growing community
  • Swimming pool
  • And many more.

Apartment Amenities

  • Chef-inspired kitchens
  • Granite countertops
  • Pendant and recessed lighting
  • Balconies
  • And many more.

Exclusively listed by

Michael Furrow

SVP, Investment Sales