Berkshire Property Holdings has made its second and largest multifamily investment in the Dallas metroplex in the span of eight months with the acquisition of a two-property, 568-unit apartment portfolio in Richardson, Texas for $56.8 million. Berkshire Property Holdings, a privately held real estate investment firm, entered the market in December 2019 acquiring a 224-unit apartment complex in Arlington.
Berkshire Property Holdings acquired the portfolio from a local real estate investor, which had owned the assets since 2016. The properties are two adjacent 1979 vintage garden-style communities located on the 9900-10000 block of Walnut Street in the Dallas suburb of Richardson.
The Parks at Walnut features 308 one- and two- bedroom homes situated in 25 two-story residential buildings on a 12-acre site. The 260 apartment homes at Ninety Nine 44 on Walnut include a mix of one- and two-bedroom floorplans in 27 two-story residential buildings on a 10.4 acre site. Both low-density gated communities include swimming pools, barbecue and picnic areas, playground and resident clubhouses.
Berkshire Property Holdings will undertake a multi-million dollar renovation program across the portfolio as units roll. The program will include a complete makeover of 222 units that have not been improved since the properties were constructed in 1979. Upgrades to the unit interiors will include new cabinetry, lighting, plumbing, fixtures, plank flooring, granite countertops, new stainless steel appliances and the installation of in-unit washers and dryers.
With a portfolio that includes approximately 2500 multifamily units in Florida, Texas and Georgia, Berkshire plans to build scale in Texas where it now owns approximately 1,000 units located in Dallas and El Paso, according to company CEO and Co-Founder Zamir Kazi.
“Pre-pandemic, Texas was one of leaders in both job and population growth in the United States creating tremendous demand for quality and affordable housing,” said Kazi. “The diversity and strength of the state economy bodes well for recovery and we want to be here in a significant way when that happens.”
According to the June 2020 Outlook for the Texas Economy published by the Real Estate Center at Texas A&M University, the Real Estate Center’s Texas weekly leading economic activity index indicated “economic activity continues to improve and the state’s economy is on the path to recovery.”
Berkshire Property Holdings leveraged the acquisition with 10-year agency financing from Freddie Mac, which was arranged by Brian Eisendrath and his team at CBRE out of Los Angeles.
William Jarnagan, Jay Gunn, Taylor Hill, Tom Burns and Michael Ware in the Dallas office of Berkadia represented both parties in the transaction.