Visit Doc Center
Executive Summary
Berkadia’s Multifamily Investment Sales Team is pleased to present the exclusive listing of Tacara at Gruene, a newly constructed, best in-class apartment community located in the ever-expanding I-35 economic gateway that is New Braunfels, Texas. Completed in 2023, Tacara at Gruene consists of 300 units spread across 9 residential buildings, providing a resort-style atmosphere with lush palm trees offering residents the opportunity to escape from the congestion of the city. Casey Development, a well-known San Antonio based developer, strategically nestled Tacara at Gruene on the northside; capitalizing its accessibility to major economic drivers along Interstate 35 with vibrant metros like New Braunfels, San Antonio, and Austin. The site also boasts premiere top-of-the-market amenities, proximity to the Gruene Historical District, and a contemporary hill country charm tailored to market demand.
Visit Doc Center
Visit Doc Center
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada.
© 2024 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.
Justin Chambers
Director
512.969.6838 justin.chambers@berkadia.com
Adam Sumrall
Director
512.960.2674 adam.sumrall@berkadia.com
Justin Cole
Managing Director
512.226.8711 justin.cole@berkadia.com
Kelly Witherspoon
Senior Managing Director
512.226.8706 kelly.witherspoon@berkadia.com
Producers
BACK TO TOP
CONTACT US
Contact
LOCATION
HIGHLIGHTS
HOME
PHOTO GALLERY
Privacy
Terms of Use
Document Center
ALL CASH TRANSACTION
8
Prospective investors can take advantage of the attractive financing options that exist in the marketplace today. With the combination of current market rate interest rates and an attractive in-place cap rate, Summer House presents an investor with a healthy cash-on-cash yield for a well-located, well-maintained apartment community.
PORT OF CORPUS CHRISTI CONTINUES TO SET NEW TONNAGE RECORDS
7
The Port of Corpus Christi, in operation since 1926, has become the nation’s leading exporter of crude oil since Congress lifted the ban on oil exports in 2015, and continues to capitalize on the pipeline infrastructure coming from the notable shale basins. Operating as the nation’s largest port in total revenue tonnage, the Port of Corpus Christi ended 2023 with customers moving more than 203 million tons of goods through the Corpus Christi Ship Channel, which was an 8.1% increase from last year. The new record can be attributed to a jump in crude oil exports to over 126 million tons in 2023, a 12.5% increase compared to 2022. The Port of Corpus Christi also saw a nearly 13.5% increase in agriculture commodities to a little over 2.2 million tons, as well as a slight increase in refined products to nearly 43 million tons. A record volume of liquified natural gas (LNG) totaling 16.3 million tons moved through the Port of Corpus Christi in 2023.
The Port of Corpus Christi customers moved 51.8 million tons through the gateway during the 4Q 2023, a 4.4% increase from the same period in 2022. The leading commodities during 4Q 2023 were crude oil, refined products, and LNG. A record volume of crude oil totaling 12.2 million tons moved through the waterway in December 2023, 10.1% higher than the prior record set in September 2023.
$17.0 billion in economic activity statewide
Generates $19.9 billion in gross domestic product
Supports 131,600 direct and indirect jobs across Texas
MAJOR CAPITAL INVESTMENT LEADS TO GROWTH IN CORPUS CHRISTI MSA
6
The Corpus Christi MSA’s continues to grow at a rapid pace with the population projected to increase 3% from 2023 to 2028 and median family income increasing 10.8% from 2023 to 2028 to $69,075. Additionally, the population within a three-mile radius of Summer House is forecast to grow 5.1% over the next five years to over 134,652 residents, nearly two times faster than the projected metro wide growth rate of 3.0%. Furthermore, Corpus Christi was rated by Lantern by SoFi as the number one best city to start a business in the U.S. Smart Asset ranks Corpus Christi 25th in the cities with best work-live balance survey. Ten million tourists visited the city in FY2021-2022, spending more than $1.5 billion in the local economy.
Although tourism has always played a major role in the local economy, many other sectors are experiencing growth which is helping to further diversify the metro area and insulate the coastal region against unhealthy exposure to one sector. The energy, education, medical, and shipping sectors have seen $52B in regional investment throughout the Corpus Christi MSA in recent years. Projects such as the $809 million Harbor Bridge replacement and the $681 million Port of Corpus Christi improvement project, both with expected completions in 2025, are paving the way for the Port of Corpus Christi to continue to be the nation’s largest exporter of oil. The momentum at the Port has been staggering thanks in part to Port related investments such as Cheniere Energy’s $13 billion liquefaction plant, CC Polymers’ $1.3 billion plant, TPCO’s $1.3 billion steel pipe mill, and Exxon/SABIC’s $10+ billion facility. More recently, Steel Dynamics $1.9B capital investment in Sinton and Tesla’s in-house, >$1B lithium refinery underway in Robstown are further evidence of confidence in the Corpus Christi economy.
RESILIENT HOUSING MARKET FUNDAMENTALS INCENTIVIZES RENTING WITH FURTHER UPSIDE
5
According to Axiometrics, the Corpus Christi apartment market remains strong with an optimistic outlook. Occupancy is estimated to continue to trend positively in 2024 throughout 2027 with an overall average of 93.5%. Additionally, effective rent growth is estimated to average 2.475% from 2024 throughout 2027, which is positive for the overall fundamentals of Summer House Apartments.
The median residential housing price in South Side Corpus Christi in January 2024 was $295,000, which represents a 4.1% increase as compared to January 2023. Active listings remain near 352 total listings and the market has 3.1 months of inventory. Overall, the PITI payments continue to incentivize renting as the estimated PITI payment of the median residential home near the Property would equate to a monthly PITI payment of $2,415/month* which equates to 174% of the overall Summer House market rent of $1,388/month.
*Assumes a 10% down payment, 7.0% Fixed Interest Rate, 30-year amortization, $1,500/year insurance policy, and a 2.13% Mill Rate
PREFERRED SOUTH SIDE LOCATION WITH EXCELLENT ACCESS TO EMPLOYMENT AND RETAIL
4
Summer House is situated in the heart of Corpus Christi's south side and offers unmatched accessibility to the entire metro given its proximity to South Padre Island Drive. The Property’s proximity to such a large concentration of employers and retailers is not only attractive to current residents but provides a significant employment base that will continue to drive demand for multifamily housing in the immediate area. Uniquely positioned just off Staples Street, Summer House is within minutes of many of Corpus Christi's well-known employment drivers including CHRISTUS Spohn Hospital - South, Corpus Christi Medical Center - Bay Area, Texas A&M University - Corpus Christi, NAS – Corpus Christi, and Corpus Christi Army Depot, among others. Additionally, the Port of Corpus Christi, the Corpus Christi CBD, and the Corpus Christi International Airport are roughly 12 miles from Summer House via accessible connections off South Padre Island Drive.
Summer House also offers residents extremely quick access to the city's premier retail corridor located along South Padre Island Drive. Notably, La Palmera Mall, Moore Plaza, Sunrise Mall and Gulfway Shopping Center are all located roughly one mile away from the property at Staples Street and SPID. Additionally, several eateries and neighborhood conveniences including Andy's Tavern, Tokyo Hibachi Steak House, The VINE Juice Company, Wienerschnitzel, Authentic New York Pizza, Pooch Pad and CARisma Car Wash are within walking distance of the community.
SUMMER HOUSE RENTAL RATES OUTPERFORMING NEARBY CLASS A COMPS
3
Summer House has consistently demonstrated its ability to command premium rents that compete directly with Class A communities, thanks to its unique and timeless appeal. In December 2023, market rents at the property reached $1,388 per unit or $1.69 per square foot (PSF). When compared to Class A properties in the preferred south side area, Summer House market rents ranks just above Reserve at Saratoga ($1,327/unit) and Retreat by Watermark ($1,351/unit) and is just below Townhomes at Twenty01 ($1,734/unit) and Sage Corpus Christi ($1,515/unit). Overall, Summer House achieves impressive rents as compared to the competitive set and has consistently outperformed.
PROVEN VALUE-ADD OPPORTUNITY WITH ELEVATED INTERIOR POTENTIAL
2
The unit interior profiles at Summerhouse have been elevated to new heights by current ownership as 81 out of 136 units (59.6%) have been dynamically renovated with expansive granite peninsula-style countertops and the removal the upper cabinets making for a more open, modern look. Additionally, the units include GE stainless steel/black appliances, new cabinet fronts with modern pulls, modern tile backsplashes, gooseneck faucets, brushed nickel hardware, upgraded LED lighting fixtures, vinyl plank flooring throughout, and curved tub curtain rods. They have been able to achieve a $100/unit per month market rent premium.
Furthermore, potential value-add improvements may include implementing private patio dog yards on ground floor units, upgrading the leasing office to a more contemporary design, and modernizing the exterior amenity offering including the pool and surrounding area along with the outdoor picnic/barbeque areas.
CONDO QUALITY, GARDEN HOME DESIGN WITH PRIVATE GARAGES FOR EVERY UNIT
1
Summer House is the only one of its kind on the south side, helping differentiate itself from other similar vintage communities, which feature traditional garden-style, surface parked site plans often with detached garages featured on perimeter boundary lines. Originally built in 1983 to condo specs, Summer House features a two-story, garden home design with private garages for every unit. The combination of these inherent characteristics has provided a noticeable competitive advantage and a stabilizing effect on operating performance.
INVESTMENT HIGHLIGHTS
LOCATION
photo gallery
INVESTMENT HIGHLIGHTS
Tacara's Best-In-Class Amentiy Offering
Tacara at Gruene offers a comprehensive range of indoor and outdoor amenities providing residents with ample space to live, work, and play, all complemented by a contemporary hill country charm that sets them apart from the competition in the New Braunfels submarket.
Resort-Style Pool Courtyard with Poolside Cabanas
Covered Seating Lounge areas with Multiple TVs
Two Stainless-Steel Grills Surrounded By Recreational Areas
Modern Resident Lounge
Cold Storage Community Refrigerator
Complimentary Coffee Bar
Business Lounge
24-Hour State-of-the-Art Fitness Center » Free Weights » Punching Bag » Cardio Machines » Octagon Cross Training Station
Yoga Room – Private Workout Area
On-site Evolution Dog Wash Station
Andy Hill
Managing Director 512.226.8705 andy.hill@berkadia.com
Mortgage Bankers
Investment Advisors
2025 Hunter Road, New Braunfels, TX 78132
300
UNITS
2023
BUILT
Tacara at Gruene
3
Stories
260,910
sf
870
avg sf
13.13
Acres
INVESTMENT HIGHLIGHTS
City of New Braunfels Strategically Positioned for Substantial Economic Growth Tacara at Gruene’s location in New Braunfels is projected for significant economic growth in the coming years. New Braunfels is consistently ranked in the top ten fastest growing cities in the country, and its population has increased by 35% since the last U.S. census in 2020. Located at the epicenter between San Antonio and Austin, some notable projects include mixed use developments, industrial developments, and highend retail sites that are set to capitalize on the unique, consumer friendly hill county living lifestyle centered around convenience and charm.
In Downtown New Braunfels, Co-Op Market Place, was approved for incentives and reinvestment zoning as of the Fall of 2024. Located only 13 minutes away from the property, this revitalization of downtown will create a family friendly retail and culinary destination with plenty of outdoor space, a farmer’s market with high quality artisanal and regional food and products, and much more. In addition to this, Creekside Town Center, about 2 miles east of the Property, continues to be a destination for prominent national retailers that offer New Braunfels residents a variety of shopping, dining, and entertainment options. The final development phase here will showcase expanded specialty retail and dining options, newly renovated Evo Entertainment, and dynamic new tenants including EoS Fitness and Topgolf.
Northeast along I-35 lies Mayfair, a mixed-use development and master-planned community with over 3 million square feet of commercial and industrial space. Three years into the project, Mayfair is making incredible strides with Fairway Park opened in Fall of 2024, the first public park for Mayfair. Midtown Mayfair, commercial space that features restaurants and shopping is slated to open in 2025. Furthermore, Solms Landing is a 98-acre, $500 million mixed-use development that includes premium office space, restaurants, and retail, along with an upscale hotel. These projects highlight the growing demand right in the heart of the I-35 economic corridor, with Tacara at Gruene set to reap the benefits in the coming future.
Tacara at Gruene is conveniently located near Interstate-35, the main freeway connecting Austin and San Antonio, which sees over 100,000 vehicles daily. This prime location offers residents easy access to various employment and entertainment hubs in the San Antonio Metro area. Within a 30-minute drive from Tacara at Gruene, residents can reach over 53,000+ job opportunities, including major employers such as Amazon (18 miles away), the Walmart and Sam’s Club Distribution Center (4 miles), Resolute Baptist Hospital (2 miles), and Randolph Air Force Base (22 miles), part of Joint Base San Antonio, the region’s largest employer. In addition to this, with a location just outside of San Antonio along I-35, The Schertz-Selma industrial corridor is a major gateway to the outer suburbs of the Greater San Antonio Metro. With over 9,000 full-time employees, key industries in Schertz include manufacturing, distribution, and retail. Additionally, the property’s excellent connectivity allows residents to enjoy nearby family-friendly entertainment destinations like Landa Park, Schlitterbahn, and the Historic Gruene District. The Historic Gruene District, less than one mile away from the Property, is particularly noteworthy, featuring the oldest dance hall in Texas and spanning 15 walkable acres filled with local boutique shops. Visitors can immerse themselves in the rich small-town charm that defines this unique area.
Will Caruth
Managing Director
210.377.2768 Will.Caruth@berkadia.com
Cody Courtney
Senior Director
210.377.1219 Cody.Courtney@berkadia.com
The Offering
Home
MENU
Terms of Use
Privacy
photo gallery
CONTACT
location
DOCUMENT CENTER
Contact
LOCATION
THE OFFERING
HOME
PHOTO GALLERY
Privacy
Terms of Use
Document Center
INVESTMENT HIGHLIGHTS
Tacara's Top-of-the-Market Standard Luxurious Interior Finishes and Unparalleled Attention to Detail
Tacara at Gruene presents a selection of one, two, and three-bedroom floor plans, with an impressive average size of 870 square feet. Unparalleled among other Class A garden-style communities, the interior finishes rival that of a high-end home with an exquisite attention to detail throughout each unit. Casey Development has meticulously crafted a first-class living experience, ensuring exceptional quality in every detail.
Each open-floor plan is thoughtfully designed with high-end finishes and in-home conveniences, featuring:
Spacious Island Kitchens
Faux Wood Plank Flooring
Stunning Quartz Countertops
Versatile Soft-Close Cabinets with White Subway Tile Backsplashes
Premium Samsung Stainless Steel Appliances » Side-By-Side Refrigerators » Full-Size Washer and Dryers
Elegant Kitchen Sinks with Gooseneck Faucets
Deep, Undermounted Single-Basin Stainless Steel Sinks
Designer Gooseneck Faucets with Vegetable Sprayer
Countertop-Mounted Push Button Disposals
Professional-Grade Door Handles and Soft-Closing Cabinetry
Floating Cabinetry with Under-Cabinet Lighting
INVESTMENT HIGHLIGHTS
Unique Livability Offering Set to Capitalize on Future Growth Residents of Tacara at Gruene enjoy a unique sense of community just along 306 and Hunter Road, close enough to major retail and employment destinations, while also being conveniently nestled away from the congestion of I-35. Just down Hunter Road, less than a mile away, residents can immerse themselves in the rich culture of the Gruene Historic District, which is golf cart accessible, allowing folks a unique opportunity unlike any other apartment in New Braunfels, to experience true Hill County charm.
Many of the residents currently rent the detached garages to store their golf carts, which validates both the utilization of the offering as well as the continued Other Income potential of the community. Additionally, The Gruene Heights Shopping Center, just a few blocks away, brings creative retail destinations like HteaO and Chicken Salad Chick to Tacara at Gruene. Momentum has spurred into a phase II just down the road, which will include more of the same. Creative visions of future retail development are coming soon just in front of The Property as well, with proposed renderings encompassing a brewery, a bank, and multiple pickleball courts, giving residents a heightened sense of community to call their own.
INVESTMENT HIGHLIGHTS
Strong Demographics Point to Further Demand Within a 5-mile radius of the property, population growth is projected to increase by 7.7% over the next 5 years, outpacing the overall growth in Comal County. The median household income within a 5-mile radius of The Property is $87,524, 11.8% higher than Metro San Antonio, which is a strong indicator of healthy rental fundamentals. This income level is expected to rise to $104,795 by 2030, reflecting a significant growth of 19.4%. Using the 3x income rule, residents earning the current median income can afford monthly rent up to $2,431. This suggests ample opportunity for rent increases without financially straining residents in New Braunfels, making it an attractive prospect for potential investors.
1
2
4
5
6
INVESTMENT HIGHLIGHTS
Stabilized Top-of-the-Market Asset Below Replacement Cost Tacara at Gruene, a stabilized, superior asset, presents a unique opportunity for an investor to acquire a best in-class property below today’s replacement cost. Impact fees for multifamily residential development have more than doubled since 2023, further driving up replacement costs and straining future supply. These fees will remain a persistent challenge in the submarket for years to come. In addition to this, a potential buyer will be able to benefit from favorable financing given the property’s stabilized nature amidst economic headwinds. With absorption projected to outpace delivery for the first time since 2021, Tacara at Gruene presents an investor the opportunity to own a fully stabilized and amenity rich, trophy-asset in one of San Antonio’s fastest growing submarkets poised to outperform on a national level.
3
TYLER NOWLIN
Director 512.226.8701 tyler.nowlin@berkadia.com