at 120 W Josephine St looking north.
Lynd, SAHA plan $58M mixed-income apartment development next to Pearl
By Mitchell Parton – Reporter, San Antonio Business Journal
Aug 21, 2020, 8:13am CDT Updated Aug 21, 2020, 10:16am CDT
A high-end apartment complex is planned steps away from Pearl, bringing 259 units aimed at various income levels through a public-private partnership.
The San Antonio Housing Authority will partner with the Shavano Park-based Lynd Co. on the $58.3 million project at 120 Josephine St. The development is planned to include 220 one-bedroom units and 39 two-bedroom units from 464 to 1,350 square feet as well as a clubhouse, pool, 340 internal parking spaces and fitness center, according to SAHA documents.
The Housing Facility Corp. will acquire the land and enter a 75-year lease with Josephine Apartments LP, which is jointly owned by a Lynd affiliate, according to SAHA. Bartlett Cocke General Contractors will build the project in conjunction with the SAHA affiliate San Antonio Housing Facility Corp., which will also serve as a general contractor, exempting materials purchased for the project from sales tax. Through the partnership, Lynd also will be exempt from property taxes.
The Business Journal previously reported that the Materials Marketing headquarters on the property would be demolished and that the San Antonio City Council approved rezoning in March from industrial to both multifamily and commercial.
The apartment complex will provide half of the units at market rate and half at or less than 80% of the area's median income, with some at less than 60%, according to SAHA documents. Units are estimated to range from 464 square feet to 1,350 square feet.
“We wanted to make sure there was true affordability in this development, and to make sure we could get it properly financed," said Timothy Alcott, real estate and legal services officer for SAHA, adding that the proximity to the River Walk and downtown will be a key driver for demand.
“We’re technically not in Pearl, but certainly in walking distance," Alcott said. "The market-rate units are going to lease up extremely quickly.”
The project began as a joint venture with Fulcrum Development as a mixed-use development with a substantial commercial footprint, but plans have changed since the start of the Covid-19 pandemic, according to David Lynd, president and CEO of the Lynd Co.
"As a result of the pandemic we wanted to de-risk the project and have elected to remove the commercial component," Lynd said in a statement. "Now it is a pure residential play being headed by Lynd."
Alcott said SAHA became involved with the project around February or March, and that the relationship between SAHA and Lynd began when SAHA President and CEO David Nisivoccia met as panelists at a conference hosted by city of San Antonio.
The construction start date has not yet been established but will take about 21 months, Lynd said.
SAHA and the Lynd Co. recently broke ground on another development with a similarly structured deal near Alamo Ranch. Alcott said that developments with a large ratio of market-rate units will not be the norm for SAHA moving forward, but that they provide revenue for more deeply affordable units and supplement projects utilizing 9% tax credits from the city.
"We want to provide as many deeply affordable units as possible," Alcott said. "The best direct way for housing authorities to build deeply affordable units is the tax credit program."
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