A former Blackstone apartment complex in Dallas will become workforce housing after a recent change in ownership.
The Midtown Park domain was acquired by a joint venture between Waterford Property Company, Vistoria Group and Northern Liberties. The partners also entered into a long-term land lease with the Dallas Housing Finance Corporation.
The seller is Blackstone Real Estate Income Trust. The price was not disclosed, but the property was valued at $85.5 million last year, according to Dallas Central Appraisal District records.
The Class A, 395-unit apartment complex is located at 8169 Midtown Boulevard in the Lake Highlands neighborhood, about 16 miles north of downtown. Built in 2016.
In exchange for 99 years of 100 percent property tax abatement, the buyer will immediately cap rents for eligible new residents. In 2023, his estimated tax bill on the property was close to $2 million.
Half of all units will be reserved for residents earning 80% of the area median income. Thirty-nine percent of the units will be reserved for residents with an AMI of 140 percent. 10% of the units will be leased at market rates.
The deal signals affordable housing funds' focus on multifamily transactions, which have been slowed by rising interest rates and stricter lending standards.
Building a portfolio of workforce housing in California “allowed us to focus on similar much-needed solutions in Texas,” said Waterford co-founder John Drachman.
Debt for this transaction was provided by Freddie Mac through Walker & Dunlop.
The Dallas Housing Finance Corporation was established by the city in 1984 to provide financing, including tax-exempt mortgage revenue bonds, for the acquisition, development, and redevelopment of multifamily housing in the city.
Waterford is a Newport Beach-based real estate development company specializing in the development of mixed-use projects, affordable housing development and investment, and other commercial real estate redevelopment in California.
Vistria is a private investment firm with offices in Chicago, Dallas, and New York.
Northern Liberties is a Brooklyn-based real estate company specializing in workforce and affordable housing acquisition.
