SPI Advisory Sells 240-Unit Metroplex Asset

In 2022, the asset became subject to a $29.1 million CMBS loan.

Canopy at South Lakes

Canopy at South Lakes. Image courtesy of SPI Advisory

SPI Advisory has sold Canopy at South Lakes, a 240-unit multifamily community in the Dallas-Fort Worth suburb of Denton, Texas.

The company acquired the property from Western Securities in 2021, according to Yardi Matrix data. The same source shows that in early 2022, the asset became subject to a $29.1 million CMBS loan originated by Colliers Mortgage.

Completed in 2002, the garden-style community comprises 10 three-story buildings which incorporate one-, two- and three-bedroom floorplans ranging from 713 to 1,256 square feet. Apartments feature stainless-steel appliances, in-unit washers and dryers, walk-in closets and hardwood flooring. Common-area amenities encompass a fitness center, clubhouse, swimming pool, dog park and volleyball court, along with 520 parking spaces. During its ownership, SPI Advisory implemented multiple capital improvements including unit upgrades and amenity renovations.

Located at 500 S. Interstate 35 E., the property is 38 miles north of downtown Dallas and roughly the same distance from Forth Worth. The Dallas/Fort Worth International Airport is roughly 23 miles away, while the community is less than 3 miles south of the heavily retail-populated Denton Square.

SPI Advisory Principal Sean Mabarak stated in prepared remarks that the returns generated by the sale after a two-year hold exceeded the ones projected at the time of the acquisition for a five-year period.

The Metroplex market has stayed active despite economic uncertainty—at the end of 2022, a Goldman Sachs-led joint venture acquired an eight-property portfolio totaling 2,766 units in the area.

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