Origin Fund Adds Dallas Apartment Asset

The 112-unit residential community in the Highland Park neighborhood was acquired through Origin’s Fund III and is the 13th asset in the fund’s portfolio.
Alto Highland Park

Origin Investments, a Chicago-based real estate investment firm, is expanding the multifamily holdings within its Fund III with the acquisition of a 112-unit property in the Highland Park neighborhood of Dallas.

Known as The Gables Highland Park in Dallas, Origin is renaming the property Alto of Highland and planning a capital improvement plan for the interiors and common areas. Units will be refurbished with new cabinets, countertops, appliances and flooring among other upgrades.

“This acquisition of Alto Highland Park represents a unique opportunity to own irreplaceable rental product in the best public school district in Dallas with little other purpose-built rental product,” Matt Ozee, vice president of acquisitions, Origin Investments, said in a prepared statement.

The property was developed in 2001 and 2007 and consists of The Residences, three-story condo-style buildings with 57 units, and The Brownstones, a series of brownstone-style buildings with 55 units. Average unit size is 1,888 square feet. At the time of acquisition, the asset was approximately 90 percent leased.

Alto of Highland is located in one of Dallas’ premier neighborhoods with excellent schools. The property is adjacent to a Whole Foods grocery store, four miles from downtown Dallas and close to Love Field Airport and numerous popular office submarkets.

“Given the size and quality of the units, its proximity to amenities from quality schools to shopping, restaurants and entertainment, Alto Highland Park is attractive to those who may be downsizing yet wanting to remain in the area, as well as families that are eager to get into the coveted Highland Park school system,” Ozee added.

The seller was represented by a team of commercial real estate investment specialists from ARA, A Newmark Company.

Fund III Properties

The pool at Alto Highland Park

Alto Highland Park is the 13th property acquired through Origin’s $150 million Fund III. The fund consists of seven multifamily properties and six office buildings with an aggregate value of $387 million.

When the fund was fully subscribed and closed in July 2017, Origin executives said they expected to acquire $600 million in value-added commercial and multifamily properties. Since July 2016, assets have been purchased in Raleigh and Durham, N.C.; Denver; Atlanta; Charleston, S.C., Dallas and Houston. Other Texas Fund III acquisitions are Stella Apartments (AMLI @ the Medical Center) in Houston, a 334-unit apartment complex near the Texas Medical Center, and Lee Park Towers, a 121,000-square-foot, two-building, Class B office building in Dallas’ Uptown/Turtle Creek submarket. Origin and a joint venture partner launched a comprehensive modernization program for the office complex.

In other Origin news, the firm and partner SEEC Enterprises said in August they were planning to begin construction on Brick Stone Apartments in Denver, a $35 million, 150-unit, garden-style community. Units are slated to be completed in phases starting in the second quarter of 2019.

Working with another joint venture partner, Aegon Real Estates U.S., Origin acquired Advenir at Saddle Rock, a 320-unit community in Aurora, Colo., a Denver suburb, for $71.2 million. Built in 2002, the 350,700-square-foot multifamily property was 95 percent leased at the time of the transaction. The partners are planning to upgrade the property.

Founded in 2007, Origin has more than $700 million in multifamily and office assets under management.

Images courtesy of Origin Investments