Origin Investments Buys 300-Unit Dallas Community
The company acquired the asset through its Delaware Statutory Trust.
Origin Investments’ Delaware Statutory Trust has acquired The Starling, a Class A, 300-unit community in Princeton, Texas. NRP Group previously owned the asset, according to Yardi Matrix data.
The Starling’s purchase marked the trust’s first closed transaction, as well as Origin Investments’ first common equity acquisition of an existing multifamily community since March 2020.
Origin Investments Vice President Phil Schuholz commented, in prepared remarks, that the purchase was made below current replacement costs, as well as the ones dating back two years. The Starling was 92 percent occupied at the time of the transaction with an average in-place rent of $1,542.
Dubbed Origin Exchange, the DST debuted this May. The trust utilizes the 1031 exchange, allowing investors to defer capital gains taxes and step out of active property oversight, thereby outsourcing community management.
A Class A community near the City Hall
NRP Group broke ground on The Starling in 2020 and secured a $30 million construction loan issued by Zions Bank, the same data provider shows. The project was the result of a public-private partnership that required a portion of its units be reserved for residents earning up to 80 percent of the area median income. In exchange, the arrangement provided a 100 percent property tax abatement for 99 years.
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Completed on 12 acres in 2022, the community comprises 11 three-story, garden-style buildings. The Starling features studio and one- to three-bedroom floorplans ranging from 622 to 1,399 square feet. Moreover, the property includes 30 detached garages, 56 carports and 454 parking spaces. Amenities consist of a swimming pool, two private business offices, a conference room, an entertainment area, a clubhouse and a dog park.
Located at 149 Princeton Crossroad in North Dallas, the property is less than 1 mile from U.S. Route 380 and within walking distance of the Princeton City Hall. Downtown Dallas is about 43 miles southwest.
North Dallas witnesses heightened multifamily investment
Investors traded $586 million in multifamily deals in the Dallas-Fort Worth market during the first five months of the year, according to a Yardi Matrix report. Most purchases were value-add investments—75 percent—so the average price per unit dropped nearly 20 percent year-over-year, clocking in at $123,965 in May. The figure landed below the national average of $176,968.
North Dallas stood out with $334 million in assets changing hands, representing more than half the sales closed in the Metroplex during that interval.
A recent transaction in the area was S2 Capital’s purchase of MC Cos.’ The Place at Saddle Creek, a 238-unit property in Carrollton, Texas. The buyer also assumed a Freddie Mac loan.
