The early look is over the land and not really about the 95%-leased San Carlos Apartments at 2516 New Orleans Place. Joshua Shatz, principal of Dallas-based Custom Properties LLC, tells GlobeSt.com that the seller of record, San Carlos Associates LP of Dallas, is hoping to latch onto a co-developer deal to rework the dirt into a residential and retail redevelopment.
"This property will be able to get a zoning change for a mid-rise," Shatz says. "That's what we think and that's our expectations."
The owner acquired the complex two years ago, buying into a redevelopment pocket being spurred by Parkland Hospital's expansion plan. [IMGCAP(2)]In addition, the complex practically neighbors Children's Medical Center and within blocks of an under-construction Dallas Area Rapid Transit station. And right across the street is 5225 Maple Ave., where the top rent quote is $1,375 per month.
Shatz says San Carlos Apartments is being marketed to just a select few for roughly $9 million, with developers at the top of the list. And, he's not ruling out an outright sale although he believes the real opportunity lies in the dirt. He adds that Parkland's expansion will create "the right traffic pattern" and demand for residential and retail space.
To keep cash flowing, he says the owner is still signing leases for the mix of efficiencies and one- and two-bedroom apartments, which average 894 sf. The average rent is 80 cents per sf. "At this point, we don't want cash flow to suffer," Shatz says. "But, we think it's just a great opportunity. It's just the timing of it."
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