Stoneweg Buys Prosper Apartment Community From Carlyle

Stoneweg US purchased a 324-unit apartment community in the north Dallas town of Prosper.

The St. Petersburg, Florida-based real estate company that specializes in workforce housing bought the site at 4400 Prairie Xing, which was developed by Carlyle and Alliance Residential in 2021. Stoneweg did not disclose the terms of the deal, but said the acquisition was financed with a Freddie Mac loan. The property is valued at $50 million, according to the Collin County Appraisal District.

Prose Frontier, which will become Prosper Crossings, sits on 15 acres and features 10 three-story buildings with one- and two-bedroom units.

Prosper is one of the fastest-growing communities in Texas. Between 2020 and 2023, Prosper added 10,534 new residents – an increase of 35 percent – according to data from the Texas Demographic Center.

The complex was developed as attainable housing to target renters making about 80 percent of the local median income. The median household income in Prosper is $159,164, per the U.S. Census Bureau.

The developers were able to deliver this product by cutting construction costs, said Carlyle principal Ashley Fitzgerald. For example, while Prosper Crossings looks similar to comparable Class A sites, it does not have elevators or balconies. By making adjustments like that, the developers built the project at about $157,000 per unit rather than $200,000 per unit, which is the cost of building a comparable Class A product, Fitzgerald said.

Stoneweg focuses on ESG optimization and has already put its mark on the project, said Garrett Pisarik, the company’s director of acquisitions. To increase the community’s environmental friendliness, Stoneweg installed electric vehicle charging stations, solar panels and made updates to the site’s landscaping.

Since its launch in 2016, Stoneweg US has purchased more than 90 properties in the Midwest and the Sunbelt. It has a $2.1 billion portfolio of about 15,000 units throughout the country.