Dallas–Wood Partners has closed on an acquisition of a five-acre property in the southwestern part of the city, and it plans to begin construction on a low-rise apartment property on the site this month. The 207-unit development, Alta West Davis, will include two three-story buildings featuring studio, one- and two-bedroom apartments ranging in size from 650 square feet to 1,200 square feet.
Alta West Davis will be located in North Oak Cliff, an older Dallas neighborhood, most of whose homes date from the early 20th century. The neighborhood is predominantly craftsman or prairie style architecture, and the new property will be reflective of the historic nature of the neighborhood, notes Wood Partners.
The site, currently a vacant lot that used to be home to an apartment complex, wasn’t originally slated for new residential. Back in the 2000s, Incap Fund assembled the land and said that it was going to develop an “eclectic” shopping district. The lender foreclosed on the property in 2009, however, which put new development on the five-acre site on ice until recently.
Now Wood Partners has possession of the land–bought from Cienda Partners for an unspecified price–and apartments are a much more viable notion in the Dallas metro market than new retail. The metro Dallas apartment market had a vacancy rate of 5.3 percent at the end of 2011, estimates investment specialist Marcus & Millichap, compared with 7 percent at the end of 2010. Construction of new units will be up in 2012, but so will employment in the Dallas-Fort Worth area, probably more than during 2011. Nearly 80,000 jobs were created in the metroplex during the 12 months ending in the third quarter of 2011, according to the Census Bureau.
The developer says that Alta West Davis, as an urban infill property, will appeal to the renter-by-choice market. But it will also appeal to renters who are looking for a relatively inexpensive infill location–Wood Partners also asserts that rents at the property will be “$500 to $1,000 a month below other infill neighborhoods.”