Fort Worth Sells Mixed-Use Building to New York Buyer
"The fact that the City of Fort Worth put its own economic development funds into developing the mixed-use complex was an uncommon situation."
FORT WORTH–A downtown Fort Worth mixed-use building that was developed the City of Fort Worth has been scooped up by a New York buyer, Beachwold Residential, for an undisclosed price.
The Class A complex located at 250 Lancaster was completed in 2017 and marketed for sale by Institutional Property Advisors (IPA), a division of Marcus & Millichap.
The building features 130 apartments with ground-floor retail triple-net leased a coffee shop, hair salon, and a dentist’s office, IPA Senior Director Drew Kile tells GlobeSt.com.
The property’s retail space will generate income beyond the apartment’s revenue, according to Will Balthrope, IPA executive director. The location provides “convenient access” to downtown Fort Worth, he adds.
The apartment units’ occupancy is in the 90% range, according to Kile, who works out of IPA’s Dallas office.
Balthrope, Kile, and IPA director Joey Tumminello represented the City of Fort Worth in the sale.
“The process got very competitive with several groups bidding at similar levels,” Kile says.
In the end, New York-based Beachwold Residential won out. The company owns other multifamily properties in Fort Worth and other parts of Texas. In total, Beachwold controls 57 properties and 15,000 multi-family units in Connecticut, Texas, Florida, Georgia, Virginia, Maryland, New Jersey, and Tennessee, according to its website.
Fort Worth Uses Own Funds To Develop Complex
The fact that the City of Fort Worth put its own economic development funds into developing the mixed-use complex was an uncommon situation, Kile says. Typically, cities might put their economic development money into other types of developments or to offer incentives, he adds.
The property was in an area located on the southern edge of downtown Fort Worth that had been underutilized because a highway previously sat “on top of Lancaster,” according to Kile.
“The city wanted to stimulate some development, so they went in with their own equity and hired a GC to build the building to put a stake in the ground of new retail and residential development in the Lancaster corridor,” he says. “It’s a pretty unique situation.”