W
oodbranch Management is moving forward with plans to redevelop a midrise office complex into apartments in northwest San Antonio. The developer, led by president Philip Schneidau, has requested a zoning change to allow up to 845 apartments on the 13-acre site at 8401 Datapoint Drive. This project would mark a significant shift for the site, which has struggled financially in recent years after being caught in a complex bankruptcy case.

    Woodbranch acquired full ownership of the property last year, assuming the ground lease and taking over from previous owner Richmond Honan. Financial records show the property had $588,000 in monthly rental income but a net loss of $14.9 million for the year to date. The San Antonio multifamily market is experiencing an oversupply of units, leading to increased leverage for tenants and pressure on landlords.

    The city's single-family home market remains strong due to rapid job growth and high demand for housing. However, the multifamily market has been impacted by rising interest rates and a surge in new developments. This imbalance has put financial strain on some property owners, including those who took out floating-rate loans before interest rates increased in 2022.