An entity related to the Troesh family has picked up the first Planet Smart City apartment complex in the U.S. for $65.3 million.
The Nevada-based investor operating as 10018 Ingram II LLC bought The District at Little Elm from a developer partnership of Planet Smart City and Palladium USA.
The sale yielded a 30 percent internal rate of return, according to a release from Planet Smart City. Within three months of delivery, the asset was 90 percent leased, the release said.
The buyer assumed the seller’s $49.8 million mortgage from Berkadia Commercial. The mortgage is being insured by the U.S. Department of Housing and Urban Development, according to the loan documents.
The District at Little Elm is a 324-unit apartment complex located at 300 Lakefront Drive in the north Metroplex suburb of Little Elm, which is located about 35 north of downtown Dallas. The price was less than $202,000 per unit.
Though sales volume has slipped for multifamily trades, these transactions are still real estate investors’ first choice when it comes to asset class, according to a recent Avison Young report.
However, average price per unit slipped almost 17 percent year-over-year in the first quarter of 2024, the report said.
Planet Smart City has six projects in Brazil, three in India and one in Italy.
Read more
Commercial
Dallas
Growth soothes the pain of distress in DFW’s multifamily market
Commercial
Dallas
Is DFW the most profitable CRE investment market in the nation?
Texas
Texas multifamily developers slam on the brakes
Palladium USA is a Dallas-based multifamily developer. Its parent company is the international real estate firm Palladium Group.
10018 Ingram II LLC is connected with the Troesh family, whose billionaire patriarch Dennis Troesh built his fortune in the cement industry. He founded Robertson’s Ready Mix. Troesh also controls a nearly 15 percent stake in data center company Switch.
In 2014, Dennis and his wife Carol Troesh pledged $100 million to Loma Linda University Health for a new children’s hospital near Los Angeles.