It's rare to see a developer build properties and then hold them for 40 years. But that’s exactly what happened with the Creekstone and Gable Point in Dallas.
The Pardue family built two apartment communities totaling 374 units in 1982 and 1986, according to a listing from Institutional Property Advisors. After four decades of owning and operating the assets, it sold them.
In a March 13 press release, Clover Capital Partners announced it had secured the two assets, which feature a mix of one- and two-bedroom floor plans.
The properties, Creekstone and Gable Point, sit adjacent to the Dallas Athletic Club in east Dallas, near major employment centers, established retail corridors and key recreational amenities, per the news release.
Clover said the properties offer residents convenient access to major thoroughfares, retail and outdoor amenities in a submarket that continues to experience strong demand for attainable workforce housing, according to the release.
The Dallas-Fort Worth metroplex has been one of the strongest apartment markets in the country, with more than 700,000 residents added between 2020 and 2024, according to the Federal Reserve Bank of St. Louis.
However, like many Sun Belt areas, it has dealt with excess supply over the last couple of years, with occupancy falling to 93.1% and a 3.3% year-over-year rent price decline last November, according to RealPage.
Despite the current rocky market, Clover said the properties give the firm an attractive basis well below both current replacement cost and prevailing market pricing, creating a strong foundation for long-term value creation, per the release.
The buyer plans to implement operational improvements and strategic capital investment, according to the release. IPA said the well-maintained assets had “minimal deferred maintenance” and a “recent exterior capital infusion,” including a new boiler, exterior signs, landscaping and paint and siding.
In the listing, IPA said that properties consisted of 96% classic units with below-market rents and no utility reimbursements. It contended that new ownership could monetize the properties by implementing a cable contract and providing reserved and covered parking options.
“This acquisition represents another meaningful step forward for our firm,” Clover Co-Founder Bryan Harlan said in a press release. “Clover looks forward to executing our business plan, enhancing the resident experience, and creating long-term value for our investors while maintaining a disciplined approach to risk.”
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