Dallas, TX - Waterford Property Company (Waterford), The Vistria Group (Vistria), and Northern Liberties, in partnership with the Dallas Housing Finance Corporation (DHFC), have announced the acquisition of a 395-unit class A multifamily community located at 8169 Midtown Blvd. in Dallas.
The joint venture purchased the property, known as Domain at Midtown Park, and at the same time entered into a long-term ground lease with the DHFC. With this acquisition, the owners will immediately restrict rents for new qualified residents to create stable workforce housing as part of an agreement with DHFC in exchange for 100 percent property tax abatement for 99 years.
"Core to our investing and impact philosophy is that creating more affordable housing is a crucial element in building more resilient households and vibrant communities,” said Margaret Anadu, Senior Partner and Head of Real Estate at The Vistria Group. “We are thrilled to partner with Waterford Property Company and Northern Liberties to ensure housing is affordable at Domain for years to come and look forward to working alongside our community partners to deliver essential services to our residents."
Created by the City of Dallas in 1984, DHFC provides tax-exempt mortgage revenue bonds and other support for the acquisition, construction, or substantial rehabilitation of multi-family housing as part of Dallas’ department of housing and neighborhood revitalization.
“Through this acquisition, Waterford is continuing its mission to pursue innovative essential housing solutions. We’ve worked diligently over the last few years in California to build a portfolio of workforce-focused housing using a creative approach to lower costs for residents impacted by the high cost of living. Now we’re able to focus on a similar much-needed solution in Texas with our partners and the City of Dallas,” said Waterford Co-Founder John Drachman.
“Northern Liberties’ entry into the Dallas market highlights our investment thesis to acquire well- located assets in high-growth markets where we can create or preserve workforce and affordable housing. Our mission is to create housing stability while providing year-round services that empower our residents. By acquiring properties, investing in people, and creating community, people prosper,” said Northern Liberties Co-Founder and CEO Sharif Mitchell.
“As Dallas has experienced strong growth over the past 10 years, its rents have continued to climb, like many across the country, and the city is dealing with affordability issues. The cost of housing has gone up as much as anywhere in the United States and police, teachers and other essential workers are the ones who are at risk. This is just the beginning of our focus on Texas and the opportunity to be part of the solution to bring more affordability into the market,” said Waterford Co-Founder Sean Rawson.
Domain at Midtown Park was built in 2016. The community is located within the suburban neighborhood of Lake Highlands in Dallas, strategically positioned in the commercial district of Midtown Park. The property offers an abundance of amenities including clubhouse, fitness center, business center, BBQ grill area, outdoor lounge, cabana/pergola, dog park, and resort-style pool, storage units and a golf simulator.
The community’s current tenant base is comprised primarily of moderate-income workforce employees and families. As noted, the joint venture will restrict rents at the property setting aside 51 percent of the units for residents who make 80 percent average median income (AMI), 39 percent of the units for families who make 140 percent AMI, and 10 percent of the units at market rate.
Freddie Mac through Walker & Dunlop provided debt for the transaction.
