FARMERS BRANCH, TX—When looking at multifamily and office demands from a geographic perspective, it is obvious that metro economies have different demand drivers impacting property returns. In Dallas, the demand is off the charts for both property types.
In response to this demand, a $74 million class-A multifamily development, Jefferson Alpha West, is underway. This 409-home community is in the 14-acre Alpha West mixed-use project near the Galleria regional mall.
The multifamily project represents the first phase of the master-planned project at the corner of Alpha and Inwood roads, and near the border between Farmers Branch and Addison, TX. This area is benefiting from development at Legacy in Plano to the north and Uptown to the south.
The project is a co-development between JPI and Dallas-based Bridgeview Real Estate, master developer of the project. At completion, Alpha West will include up to 300,000 square feet of office space, 80,000 to 100,000 square feet of retail shops, a 155-room hotel and a 1,200-stall parking garage.
Jefferson Alpha West is a four-story project featuring one- and two-bedroom units ranging in size from 566 to 1,280 square feet. Apartments will feature 10-foot ceilings and contemporary kitchens with stainless steel appliances and quartz countertops. Community amenities will include concierge service, a pool, a two-story clubhouse, a fitness center/yoga studio and structured parking. The property has visibility from the Dallas North Tollway and is within walking distance of the Galleria.
Buchanan Street Partners, a Newport Beach, CA-based real estate investment management firm, in partnership with Minneapolis-based CarVal Investors, has made a $16 million preferred equity investment for the development.
“We recognize the opportunity to achieve attractive risk-adjusted returns on this investment,” said Bob Dougherty, partner at Buchanan Street Partners. “Strong regional growth paired with the merits of this project and the participants involved make this a compelling investment for Buchanan Street.”
Buchanan Street has invested and structured approximately $19.5 billion of capital in a broad range of US equity and debt real estate investments. CarVal Investors has more than $10 billion in assets under management in both credit and real estate strategies. JPI is a national developer, builder and investment manager of US class-A multifamily assets with 4,201 apartment homes under construction.
“We really were attracted by developer JPI as local experts,” Dougherty tells GlobeSt.com. “We've been cultivating the relationship for 10 years and were attracted to this area we know well, sandwiched in the center of Dallas. It's our fifth investment.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
