Dallas Multifamily Portfolio Trades for $57M
Berkshire Property Holdings acquired the 568-unit portfolio, with plans to implement a multi-million dollar renovation program.
DALLAS, TX – Privately-held real estate investment firm, Berkshire Property Holdings has acquired a two-property, 568-unit multifamily portfolio in Richardson, TX for $56.8 million.
The transaction represents Berkshire Property Holdings’ second and largest multifamily investment in the Dallas metropolitan area within the past eight months, upon entering the market in December 2019 with the purchase of a 224-unit apartment complex in Arlington, TX.
In its most recent transaction, Berkshire Property Holdings acquired the portfolio from a local real estate investor.
The acquired assets comprise two adjacent 1979 vintage garden-style communities, located on the 9900 – 10000 block of Walnut St. in the Dallas suburb.
The 308-unit, Parks at Walnut encompasses 25 two-story residential buildings situated on 12 acres of land. The 260-unit, Ninety Nine 44 on Walnut encompasses 27 two-story residential buildings situated on a 10.4 acre site. Offering a mix of one- and two-bedroom floorplans, both of the low-density gated communities feature swimming pools, barbecue and picnic areas, playground and resident clubhouses.
As the new owner, Berkshire Property Holdings will implement a multi-million dollar renovation program throughout the portfolio, including a transformation of 222 units. The company will execute unit interior upgrades such as new cabinetry, lighting, plumbing, fixtures, plank flooring, granite countertops, stainless steel appliances and in-unit washers and dryers.
Berkadia’s William Jarnagan, Jay Gunn, Taylor Hill, Tom Burns and Michael Ware represented both parties in the transaction.
CBRE’s Brian Eisendrath and his team arranged the 10-year agency financing from Freddie Mac, for which utilized in the acquisition.
“Pre-pandemic, Texas was one of leaders in both job and population growth in the United States creating tremendous demand for quality and affordable housing,” states Berkshire Property Holdings CEO and co-founder, Zamir Kazi. “The diversity and strength of the state economy bodes well for recovery and we want to be here in a significant way when that happens.”
The company plans to scale its business within Texas, where it currently owns 1,000 units. The firm’s multifamily portfolio encompasses 2,500 units in Florida, Texas and Georgia.