Starwood Capital Buys North Dallas Community

The new owner assumed the outstanding balance of an existing CMBS loan encumbering the 690-unit asset.
Keystone Castle Hills. Image courtesy of CBRE Capital Markets

Starwood Capital Group has purchased Keystone at Castle Hills, a 690-unit community in Carrollton, Texas. CBRE Capital Markets negotiated the transaction on behalf of the seller, Acre Valley Real Estate Capital.

The new owner assumed the outstanding balance of a $76.5 million CMBS loan originated in 2020 and held by Citibank, Denton County records show. According to Yardi Matrix, the 45-building property previously traded in 2007 for $50.4 million.

Located at 4600 N. Josey Lane, Keystone at Castle Hills encompasses one- and two-story buildings. The property spreads across 66.3 acres and features one- to three-bedroom apartments ranging from 600 to 1,390 square feet.

Recent enhancements

Developed in three phases in 1988, 1996 and 1998, the community has recently undergone renovations, which included adding a resident clubhouse with WeWork collaborative workspaces.

Further modernized amenities include a gym, three swimming pools and an outdoor lounge area. The property also features a business center, two laundry facilities, a volleyball and basketball court, and roughly 1400 parking spaces.

The asset is some 23 miles north of downtown Dallas. The medical centers and the retail corridor along North Josey Lane are within a mile of the community.

The CBRE Capital Markets team included Executive Vice President Danny Baker, First Vice President Nita Stewart, Vice President Chandler Sims and Senior Associate Kevin O’Boyle.

Last month, Starwood Capital was involved in the disposition of a garden-style community in Katy, Texas. The 384-unit Enclave at Cypress Park changed hands along with the adjacent Paramount Apartments, with the two properties slated to be rebranded and merged into a single community.