CalSTRS offloading upscale Turtle Creek asset as multifamily pace quickens

UPDATE 8/15/24 at 11:30am

The California State Teachers’ Retirement System is looking to offload a Dallas apartment complex as North Texas’ multifamily market begins to thaw.

The public pension fund listed the 331-unit Skye of Turtle Creek in Dallas’ Uptown neighborhood. JLL has the listing and is marketing the property as a “value-add opportunity” being offered at “a significant discount to replacement cost,” although the price wasn’t disclosed.

The 15-story apartment building was developed in 1998 and boasts 94 percent occupancy, according to the listing. The average household income of residents is more than $145,000, the listing said. 

Skye of Turtle Creek, in Uptown, was appraised at $94 million this year, according to the Dallas Central Appraisal District. That’s a valuation of $284,000 per unit.

CalSTRS purchased the property in 2020 with a $459 million loan from New York Life Insurance Company, Dallas County loan documents show. 

The 14-story property, at 2217 Ivan Street, backs up to the Katy Trail and is adjacent to Reverchon Park.

Uptown is one of Dallas-Fort Worth’s few walkable neighborhoods. Lined with mature trees, the neighborhood offers plenty of trendy restaurants and bars. 

The DFW multifamily market is beginning to show signs of life after soft pricing and high interest rates put multifamily transactions on hold last year. 

So far in August, at least three DFW multifamily assets have traded. American Landmark Apartments bought the 366-unit Prose Eastgate in Fate. S2 Capital purchased the 238-unit Place at Saddle Creek in Carrollton. Vistria and Waterford teamed up to purchase a $67 million apartment complex in Oak Cliff. 

The California State Teachers’ Retirement System is the world’s largest educator-only pension fund, providing retirement to more than a million members and beneficiaries. The fund manages more than $340 billion in assets, including nearly $47 billion in real estate.

This story was updated to reflect that the seller is The California State Teachers’ Retirement System, not The General Investment and Development Companies.

Read more

Commercial

Dallas

DFW deal volume picks up with multifamily trades

Commercial

Dallas

MLG grows DFW multifamily empire with Frisco acquisition

Commercial

Fort Worth

National CORE lands $19M loan to buy Fort Worth affordable housing