After months of sluggish activity in the world of commercial real estate, multifamily deals are picking back up in DFW.
American Landmark Apartments secured its 20th Texas asset when it bought the 366-unit apartment complex Prose Eastgate from an entity affiliated with Alliance Residential Company. The property is in the far northeast Dallas suburb of Fate, and will be rebranded as The Jameson.
The terms of the deal were not disclosed, but the Tampa-based multifamily owner-operator secured a $49.6 million mortgage from Arbor Agency Lending for the property. The loan amounts to $139,500 per unit.
In another deal, S2 Capital purchased the 238-unit Place at Saddle Creek, at 3420 Country Square Drive in Carrollton, from Arizona-based MC Companies, according to Dallas County deed documents.
The Dallas-based multifamily syndicator assumed the property’s existing Freddie Mac loan, according to a release from S2. Walker & Dunlop provided a $20.3 million mortgage ($85,300 per unit) for the property in May of last year, loan documents show. It has since been transferred to Deutsche Bank.
Terms of the sale were not disclosed, but the two-story property, built in 1981, was valued at $29.95 million in 2024, per the Dallas Central Appraisal District.
“Our ability to assume the existing fixed-rate Freddie Mac loan at a low leverage point, ensures immediate cash flow at the property level,” S2’s Ryan Everett said in the release.
S2 plans to update the units and renovate the building’s exterior and amenity spaces. It will rebrand the property as Brookbend.
The firm, founded in 2012 by Scott Everett, pools investor cash to purchase older apartment complexes and update them. It operates in high-growth markets in Arizona, Texas, Florida, Georgia and North Carolina.
It became the largest apartment buyer in Texas in 2021 when it purchased 10,000 units. The firm’s deal volume has since slowed, but there doesn’t appear to be evidence of trouble at S2, unlike its syndicator peers.
Syndicators like GVA and Tides Equities are losing assets to foreclosure after interest rates caused their debt service to balloon for properties they used floating-rate debt to purchase when rates were low.
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