Novare Group and Batson-Cook Development Co. are preparing to break ground on SkyHouse Dallas, the latest apartment development under that brand. When completed in about a year, the property will rise 24 stories on North Lamar St. near Victory Park, and include 336 units. SkyHouse Dallas was designed by Smallwood, Reynolds, Stewart, Stewart.
SkyHouse features units of one-, two- and three-bedroom units with floor-to-ceiling glass. The “SkyHouse” of the name is on the 24th floor, and includes a club room, fitness area, swimming pool, and 360-degree views of the city. The project will be Energy Star certified. According to the developers, the target market for the tower is Gen Y professionals who want to be in the city, and near public transit.
The project follows the development of SkyHouse Midtown in Atlanta; other projects using the brand are under way in Atlanta, Orlando, Austin and Houston. The developers are partnering with Simpson Housing LLLP on the Dallas project, as they are in Austin and Houston.
The Dallas-Fort Worth area’s relatively robust economy is creating new households, many of them young, at a pace that probably means future tightening for the apartment market. According to the 2Q13 report on the market by investment specialist Marcus & Millichap, employment gains in the area will be nearly 3.2 percent in 2013, or a net of over 96,000 new jobs, coming on top of 3.6 percent growth in jobs in 2012.
Landlords will be able to take advantage of the boom. By the end of 2013, Marcus & Millichap predicts, DFW effective rents will have risen 4.5 percent to an average of $863 per month. The increase will be partially attributable to the delivery of thousands of top-tier units to the marketplace, in addition to a wave of renovations, the report explains.
The Denver office of US Bank is providing construction financing for the SkyHouse Dallas. Stephen Whitehead with NorthMarq and Sherwood E. Blount Jr. brokered the land sale from seller, which is a partnership led by Hillwood, A Perot Company.