Single-family townhomes being built near Pearl

The East Quincy Townhomes are a 25-unit project that will offer 1-, 2- and 3-bedroom homes for sale. The project is south of the Pearl Brewery near the Museum Reach of the San Antonio River. The East Quincy Townhomes are a 25-unit project that will offer 1-, 2- and 3-bedroom homes for sale. The project is south of the Pearl Brewery near the Museum Reach of the San Antonio River. Image 1 of / 3 Caption Close Single-family townhomes being built near Pearl 1 / 3 Back to Gallery

Rental units around the Pearl Brewery are easy to spot. But people looking to buy something new in the area haven't had any options.

To combat the issue, plans are under way for the East Quincy Townhomes, a 25-unit project just south of the Pearl campus.

“The rental market in that area, at least for now, is pretty well taken care of,” said Steve Yndo, a general partner for the project and real estate broker with King William Realty, the listing agent for the development. “There's enough on the plate right now from a rental standpoint. So the for-sale market was the only thing that has been kind of overlooked so far.”

The nearly 1-acre site at East Quincy Street and Newell Avenue is still under contract, but the deal is expected to close later this year, said Frank Pakuszewski, principal at 1836 Asset Development and a general partner for the development. An automotive paint and body shop currently operates there and the building will have to be demolished before construction can begin. Plus the property will have to be platted so that each townhome sits on its own lot, he added.

Construction is set to begin early next year with completion expected around fall 2013. Although the deal for the property has yet to be signed, there have already been five reservations for units, Pakuszewski added.

Plans call for one-bedroom, one-bathroom units and larger two- and three-bedroom units with 31/2 baths. Units range from about 900 square feet to nearly 2,000 square feet and are priced from $220,000 to $375,000.

The three-story homes have enclosed garages, small yard spaces, polished concrete and hardwood floors, and balconies. There even will be space for an optional elevator. Buyers can select the interior finish to the townhomes, which will have a contemporary design. Alamo Architects is the design team.

Around the bend from the future development site, construction has started on more than 1,000 rental units along the Broadway corridor near the Pearl Brewery. It was the growth of the residential and retail footprints there that made the area attractive, Pakuszewski said. When looking at what to develop, the partners realized that the rental market was robust but figured renting isn't for everyone.

“The rental market has shown that there's an interest for living in that area. There's obviously a lot of multifamily product being put into play there. We saw there was a lot of desire to live down there, but that not everybody wants to rent,” Pakuszewski said.

And because of the property's small footprint, to build a rental project would not have made economic sense, he added.

Strict lending practices associated with buying condos has caused the market to struggle in recent years, said Debra Maltz, president of Centro Properties. So the decision was made to offer fee-simple townhomes, meaning the buyer owns the dwelling and the lot it sits on.

Taking the fee-simple approach could prove to be successful since it allows buyers to finance the homes similar to any traditional single-family dwelling, she added.

“It's all related to getting a loan, and for condos, it's tough. The requirements are just tougher,” Maltz said. “When it becomes a homelike fee-simple, it's in a different realm. It's an easier qualifying process and the rates are lower.”

Because there's growing popularity with living downtown, Maltz added that fee-simple developments could start to gain traction and attract attention from people not wanting to commit to a traditional home.

“It's a lifestyle choice. Not everyone wants the responsibilities of a traditional home. I think we'll start to see more projects like this before the condo market comes back.”