ShainRealty Capital Assumes $25M HUD Loan in DFW Apartment Acquisition

ShainRealty Capital has made its fifth multifamily acquisition in the Dallas area in two years.

The Los Angeles-based firm, led by Jonathan Shainberg and Elliott Shainberg, bought the 256-unit Landmark at Courtyard Villas at 2200 North Beltline Road in Mesquite.

The purchase price wasn’t disclosed, but the firm assumed a $25 million HUD loan. The debt carries a 2.83 percent interest rate until maturity in May 2053.

Multifamily buyers are focused on positive leverage, which is when the cap rate is higher than the interest rate, Jonathan Shainberg said.

“As rates are starting to climb north of 6 percent, many buyers are focusing on deals with loan assumptions as a priority,” he said.

The complex was built in 1999, and ShainRealty plans to spend $3 million to renovate and rebrand as Infinity on Sunnyvale. The units, which span about 900 square feet and have 9-foot ceilings, have never been renovated.

Wes Racht of Marcus & Millichap brokered the sale.

In other Texas multifamily news:

Irving-based Darwin German Real Estate secured almost $56 million in financing from Los Angeles-based Nova Capital to buy the 355-unit Mark at Weatherford apartments at 172 College Park Drive in Weatherford, near Fort Worth. The financing includes a nearly $38 million Fannie Mae senior loan from Walker & Dunlop and $18 million in preferred equity from Tryperion Holdings.

“Despite the headlines, appetite from capital providers for high-quality multifamily product remains strong, especially in high-growth markets such as Dallas-Fort Worth,” Nova Capital founder and managing director Steven Yazdani said.

San Francisco-based Calvera Partners has acquired the 192-unit Saddlehorn Vista Apartments at 2925 West Normandale Street in Fort Worth. The price wasn’t disclosed. The purchase is Calvera’s first in Dallas-Fort Worth, and it’s the final acquisition in the firm’s third value-add investment fund. Calvera has been tracking the market for years, said managing principal Brian Chuck.

“We waited patiently for much of the past two years as values first peaked in 2021 and then rationalized as interest rates increased,” he said. “As a result, we’re able to buy today at a healthy discount to pricing from a year ago in a city that is the fastest growing city in America.”

Stonelake Capital Partners has listed two inner-city Houston apartment complexes. The Ivy and the James, at 2303 and 2311 Mid Lane, are in the Highland Village/Upper Kirby/West U area, totaling 641 units. Dallas-based Stonelake sold a 200,000-square-foot office building, 200 Park Place, in the same area to a subsidiary of Hines for $145 million last year.

Benefit Street Partners and Strategic Properties of America put a downtown San Antonio apartment complex on the market. The firms, based in New York and New Jersey, listed the Augusta Flats at 714 McCullough Avenue, the San Antonio Business Journal reported. A listing price wasn’t given, but the 260-unit property was valued for tax purposes this year at $57 million. The apartments were built in 2019, and the owners bought them last year. Newmark has the listing.

Colorado-based UDR purchased five apartment communities in the Dallas-Fort Worth suburbs and Austin, the Dallas Morning News reported. The portfolio, which cost more than $400 million, comprises 900 units in the Dallas area. They are the 343-unit Lofts at Palisades at 2525 Empire Drive in Richardson; the 296-unit Central Square at 6235 Main Street in Frisco; and the 273-unit Villagio, at 1701 East Debbie Lane in Mansfield. Details of the Austin properties weren’t reported.

Addison-based Price Realty Corporation purchased the 300-unit Wildwood apartments at 24500 Wildwood Road in Richmond, near Houston, from developer Allen Harrison Company, according to Realty News Report. The price wasn’t made public. The complex was built last year. JLL Capital Markets handled the transaction.

—Rachel Stone