Canadian firm CPI Capital invests $13M in Helotes duplex community

“We saw the housing demand and growth in San Antonio, which was the impetus for us getting involved,” said August Biniaz, CPI’s co-founder and chief investment officer. “Texas has a certain sexiness to it when it comes to the economic drivers.”

Each duplex, with units averaging 1,400 square feet, is priced at $650,000 for investors, with rental rates starting at $2,000 per unit. Unlike traditional built-to-rent models, where developers retain properties, Apollo Oaks is a “build-to-sale for rent” project, with units sold to individual investors.

San Antonio’s diverse economy — spanning military, tech and manufacturing — along with highway expansions and Fortune 500 relocations, makes Helotes a prime location, Biniaz said.

“It’s got so many economic drivers, a lot of Fortune 500 companies,” Biniaz said. “The Helotes market itself is a great market…it’s in the Hill Country.”

CPI plans to expand in Texas, recently contracting Apollo Meadows, an 84-unit built-to-rent project in Dallas. The company is also exploring multifamily value-add projects in San Antonio. “We’re steadfast on investing in the U.S.,” Biniaz said. “The yields that are available in Texas and Florida blow out of the water any type of yields in Canada.”

Biniaz said these projects address the U.S. housing shortage by offering rentals for “renters by choice” who avoid high mortgage costs. “For someone wanting to purchase a home, the median home price in the U.S. is $420,000, and the average mortgage is almost $3,200,” Biniaz said. “BTR average monthly price is around $2,000, which is very affordable.”

Construction costs

U.S. tariffs imposed in 2025 increased construction costs by $10,000 per duplex — $7,500 from lumber and $2,500 from oil-based materials — about 4% of the project’s budget, due to pricier materials like concrete.

“We put a buffer for our construction material, such as oil-based products, should costs go up as a result of tariffs,” Biniaz said. CPI locks in material prices early and maintains close supplier relationships to mitigate impacts.

Canadian investor interest dropped due to tariffs and political rhetoric, Biniaz said, with a 50% decline in conversions from soft commitments to investments. “The response was really not economic driven. It was driven by sentiment and mood and emotion,” Biniaz said, noting a 20% relative drop in Canadian participation, from 70% to 60% of investors.

He added that there’s a 33% drop in cross-border car trips, a 22% decline in air travel, and $2 million in soft commitments failing to convert after tariff announcements.

CPI’s fund structure allows Canadians to invest through registered retirement accounts, similar to 401(k)s, boosting capital for Apollo Oaks. The firm also offers a $30,000 rate buy-down, lowering mortgage rates to about 4% for buyers, ensuring cash flow. “We make these projects more appealing to investors who are chasing cash flow,” Biniaz said.

To manage financial uncertainties, CPI underwrites construction loans with buffers, such as assuming a 12% interest rate when quoted 10%, and builds tariff contingencies into budgets. Despite challenges, CPI raised Apollo Oaks’ equity in under 60 days, with oversubscription.

Biniaz sees tariffs as a short-term hurdle but urges consideration for allies like Canada. “The U.S.’s success is our success,” he said. “It’s ironic how some policies designed to bolster U.S. competitiveness could cause issues with close trading partners.”