Hines Scores Refinancing for Apartments in Dallas Victory Park

Hines secured refinancing for an apartment building in Victory Park, underlining institutional capital’s emphasis on high-end development in Uptown Dallas.

Northmarq arranged the $129.7 million Fannie Mae loan for the Victor, a 344-unit multifamily property at 3039 Nowitzki Way, according to a release. It’s a fixed-rate, interest-only loan with a 35-year amortization schedule. The debt amounts to $377,000 per unit.

Hines, in partnership with Chicago-based Diversified Real Estate Capital, delivered the Victor in 2021. The 40-story tower features 18 penthouse apartments.

In terms of amenities, the Victor has a 38th-floor amenity deck, ninth-floor pool, golf simulator, 24-hour valet parking, coworking space and a gym. When the building opened, prices at units in the tower ranged from $1,970 to $16,300 per month.

It’s located near the Katy Trail and Klyde Warren Park, offering a rare level of walkability for Dallas apartments. It also offers proximity to American Airlines Center, home to the Dallas Stars and Mavericks.

The financing highlights Uptown as a destination for luxury living in Dallas.

Some of the Metroplex’s most anticipated developments are being built in the neighborhoods that make up Uptown, like Victory Park, Knox-Henderson and Turtle Creek. For example, the 17-story Rosewood Residences is bringing about 33 condos to Turtle Creek, and an Auberge hotel that’s part of the Knox Street Development will also offer luxury condos.

Meanwhile, the Dallas multifamily market is plagued with oversupply after a historic number of apartment units were delivered last year. As a result, occupancy levels and rental rates have fallen. Though the pipeline has contracted, 25,000 units are expected to be delivered this year, according to Marcus & Millichap.

Midway through the year, rent was down 2 percent since this time last year. Class A properties have weathered the market better, with rent virtually unchanged in the last 12 months for high-end multifamily properties like the Victor.