Verdot Capital is shifting its focus to the Texas Hill Country, with multiple projects underway in the region.
The New York-based developer recently sold its South Florida assets and has started construction on the Virginia, a 198-unit apartment complex in Seguin, slated for completion in late 2024, the San Antonio Business Journal reported. Austin-based Periscope Capital Investments is partnering with Verdot on the project.
Verdot will start construction early next year on the Dwyer, a 226-unit complex located across the street from the Virginia. They will feature amenities like swimming pools, fitness centers and clubhouses.
“With cap rates the way they are, we decided to sell our South Florida portfolio,” Sacha Azoulai, director of operations at Verdot, told the outlet.
The firm started off making value-add investments in Missouri, Tennessee and Indiana. It then shifted to developing boutique apartments in Miami.
Verdot was drawn to Central and South Texas due to the steady population and job growth, along with faster approval processes compared to other markets. Azoulai noted that obtaining permits and starting construction can take 18-24 months in Texas, which he said is faster than other markets.
“We needed projects that we could turn faster, and we realized we needed to be in developing markets rather than in developed markets,” he told the outlet.
Seguin is on the cusp of unprecedented growth, as it sits just 40 minutes northeast of San Antonio and an hour south of Austin. Seguin’s City Council is cultivating a plan to revamp its downtown in preparation for a wave of new residents.