PLANO, TX-AREA Property Partners has acquired Giovanna Apartment Homes, a 730-unit apartment community, for $54.5 million. In last 60 days, the New York City-based firm has invested more than $300 million in apartment properties across the US.
AREA Property Partners bought Giovanna from KC Spring Creek Apartments LP. The class A property marks the firm’s first apartment acquisition in the Dallas-Fort Worth market.
However, AREA Property Partners does have a presence in the Metroplex – it is partners with Prescott Realty Group in the development of The Shelby, a new apartment community near Southern Methodist University, and a planned 417-unit project called The Boulevard located nearby.
“In 2010 and 2011, we’ve targeted to actively acquire multifamily assets, and we’ve identified the top 15 markets in the US in which we have a strong interest,” says John Jacobsson, AREA partner. “Dallas-Fort Worth fits into that category. We’re familiar with the market, having invested there with different property types since 1993.”
Jacobsson tells GlobeSt.com the supply-demand characteristics in the Dallas-Fort Worth apartment sector are positive. “In a lot of submarkets, you’ve got strong demand for rental housing, but because of the financial crisis, there’s been a real drop in the amount of construction supply over the past two years,” he notes. “Rents will be rising in strong submarkets across D-FW, and that is a part of why we wanted to make this investment.”
Giovanna, located at 1800 East Spring Pkwy, offers one, two and three-bedroom apartments in a garden-style complex. Units range from 650 square feet to 1,352 square feet with monthly rents ranging from $819 to $1,414.
Originally developed by JPI, Giovanna was 97% leased at closing. The property offers four swimming pools, a 24-hour fitness center, dry sauna, steam room, volleyball courts, and a gaming and entertainment room.
AREA Property Partners plans to invest between $2 million and $4 million to update Giovanna, which was built in the late 1990s. “We think we can upgrade the appearance and give it more curb appeal,” Jacobsson says, adding that the new owner also expects to improve operations at the property. “In order for us to capture our fair share of rental growth, we think the property needs to be in tiptop shape.”
William Baxter Jr and Mark Stymiest of CBRE’s Dallas office marketed the property.
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