San Antonio’s Housing Scene Heats Up: Exciting New Apartment Complexes on the Horizon!
San Antonio is buzzing with new developments! The Oxbow Development Group has just taken a bold step in expanding its reach across the San Antonio River from the ever-popular Pearl district. Currently, they’re seeking a partial tax abatement from Bexar County for two new apartment complexes that are sure to shake things up in our beloved city. But what does this mean for the community? Let’s dive into the details!
The Project at a Glance
Oxbow is planning to invest a whopping $129 million into creating 275 market-rate apartments spread across two complexes. The first will sit at 102 E. Josephine St. housing 200 units, while the second complex will be located at 1200 E. Elmira St. with 75 units set to welcome new residents.
As Bexar County commissioners recently discussed the proposal, they highlighted the pressing need for affordable housing in San Antonio. However, amidst this conversation, they still gave the green light to negotiate about $1.4 million in tax breaks for Oxbow’s high-end apartments. This move has raised eyebrows, leading many to wonder if the city is prioritizing luxury over affordability.
A Balancing Act
Omar Gonzalez, Oxbow’s Director of Development, explained that the construction environment is becoming increasingly challenging. Rising capital costs and construction expenses are making it tough to deliver residential projects across the board. While it seems like a no-brainer to push for affordable options, the harsh reality is the market often favors higher-end developments due to land values. “It’s just an arithmetic equation,” says Gonzalez. “The right subsidy level will get you affordability.”
Commissioners Debate the Future
Commissioner Tommy Calvert, whose district encompasses the Pearl area, stated that current policies are primarily focused on market-rate housing and need to be revisited. He pointed out the sizable $24.3 million in federal funds set aside for affordable housing, suggesting they need to weigh how to make these kinds of projects happen.
Commissioner Justin Rodriguez voiced a forward-thinking plan: to consider partnering with developers to create more affordable housing solutions that would benefit a broader segment of residents. “We might not need to incentivize market rate anymore,” he suggested.
Bridging the Gaps
Some commissioners expressed concerns about granting tax breaks for market-rate developments, particularly when so many struggle with affordability. However, County Judge Peter Sakai reassured everyone by stating that tax entities would still benefit through increased revenues once the complexes are completed. Oxbow is also investing in infrastructure improvements, including building two new bridges across the river, enhancing accessibility between Pearl and the Tobin Hill neighborhood.
Moreover, the firm is not stopping there! They’re set to upgrade streets, sidewalks, and landscaping to ensure that the area remains safe and appealing for pedestrians. Altogether, infrastructure improvements are estimated to cost around $10 million, backed by $6.8 million from the city through the Midtown Tax Increment Reinvestment Zone.
Housing Market Insights
Despite concerns around vacancy rates in the wider San Antonio area, which sits around 86%, near Pearl, the numbers tell a different story. Occupancy is strong at 96.3%, with Oxbow’s own properties, the Southline Residences and Cellars at Pearl, boasting occupancy rates of 95% and 97%, respectively. This indicates that there’s also a robust demand for premium living spaces in this location.
In summary, as the conversation around affordable housing in San Antonio continues to evolve, Oxbow Development Group’s proposal offers a mix of excitement and concern. With the city looking to balance its booming real estate landscape, its residents are left wondering: will we see positive strides towards affordable housing solutions, or will high-end developments continue to dominate? Only time will tell, but one thing is for sure—the future of San Antonio’s housing market is heating up!
