Knightvest Buys Near SMU
The company plans to rent the community to students.
Knightvest Capital has acquired a 417-unit community in Dallas near the Southern Methodist University campus. The firm plans to rent the five-story property to students.
Built in 2012, the property is 88 percent occupied, according to Yardi Matrix data. Knightvest has rebranded the community, previously named Mockingbird Flats, as Belclaire, and plans to invest $10 million in improvements.
“With our headquarters in Dallas, this is a market we know extremely well, and our entire team was excited about this property—especially given its availability at a discount to its replacement cost in addition to its ground floor retail footprint,” David Moore, Knightvest founder and CEO, told Multi-Housing News. “The building is in great shape now, but we’re still planning to do renovations so that it can compete with new construction in the area.”
Belclaire includes ground-floor retail space and studio, one-, two- and three-bedroom units averaging 800 square feet. In July 2018, the property was sold by CBRE to Waterton for $50 million, Yardi Matrix data shows. CBRE had previously purchased the property from Prescott Group in July 2015.
The acquisition mark’s Knightvest’s fifth purchase through its Fund II. This comes several months after the fund’s first acquisition when it bought the 240-unit Encore Apartments, a community in Plano, Texas. As is its common strategy, Knightvest planned upgrades to the community including interior renovations, modernizations to property amenities and a new resident lounge.
Since its founding in 2007, Knightvest has invested over $10 billion to acquire over 60,000 units across high-growth metro areas in Arizona, Florida, Texas and the Carolinas.
