Cortland, a vertically integrated, multifamily real estate investment, development and management company, and Declaration Partners Real Estate (DPRE), a private investment firm anchored by David M. Rubenstein, announced the recapitalization of Vero Capital owned 3700 McKinney Avenue (“3700M“), a 381-unit high-rise apartment community in Uptown Dallas.
The transaction is part of a programmatic joint venture between Cortland and DPRE formed last year to uncover preferred equity investment opportunities amidst the market disruption caused in large part by extreme interest rate moves in recent years. Leading global real estate investor, developer and manager Oxford Properties provided senior financing for the transaction.
Vero Capital’s 21-story 3700M community is in the heart of Dallas’s Uptown neighborhood, one of the city’s most vibrant and walkable districts. It offers immediate access to upscale retail, dining and entertainment along McKinney Avenue and is within minutes of the Katy Trail, Downtown Dallas and the Arts District. The community’s central location also provides convenient connectivity to major employment centers via U.S.75 and Interstate 35, offering residents both lifestyle amenities and ease of commute across the Dallas metro.
“This investment with Declaration is exactly what we envisioned when we formed this partnership,” said Jeff Gragnolati, executive vice president of Capital Markets for Cortland. “The investment underscores the robust synergy between our teams and validates our preferred equity strategy’s effectiveness in delivering exceptional apartment homes. We believe 3700M is well-positioned to be a prized asset in the Dallas Uptown market.”
The joint venture between Cortland and Declaration Partners Real Estate was established to deploy preferred equity capital into multifamily properties across Cortland’s key markets in the Sunbelt, Midwest and Mountain West regions. The venture will invest in real estate credit deals ranging from $5 million to $35 million. These investments, which are subordinate to senior lenders’ debt, target an array of opportunities, including stabilized properties, assets in lease-up phases, value-add renovation projects and ground-up developments.
“We are thrilled to consummate this venture with our partners at Cortland,” said Ron Dalal, partner at DPRE. “This acquisition reflects the strength and high standards of our partnership as we source opportunities in search of what we believe to be the most attractive risk-reward situations in the market. We are excited to continue partnering with a specialist like Cortland as we continue to seek to invest in high quality multifamily assets in attractive submarkets.”
This acquisition expands Cortland’s presence in Dallas. The firm now owns and operates and lends to 37 communities in the Dallas-Fort Worth area as part of a Texas portfolio that includes 60 properties comprising nearly 22,000 units.
Financial terms were not disclosed.
