A local multifamily syndicator scooped up a 94-unit apartment complex in Oak Cliff recently.
The property, at 1235 and 1239 Hartsdale Drive in Dallas, was purchased by Hart House Community LLC, according to property records. A Securities and Exchange Commission filing disclosed the entity as a syndicator with a $50,000 minimum investment and listed Cody Gustafson and Robert Slattery as its leaders.Â
The seller is Hollyvale Rental Holdings LLC, a California-based company that’s owned the complex since 2021.Â
The Fort Worth office of Marcus and Millichap handled the sale of the 60-year-old property. It is 94 percent occupied, broker Al Silva said. The buyer secured a Fannie Mae loan about two months after the purchase and sale agreement, Silva said.
The price wasn’t disclosed, but the buyer borrowed $6.6 million — about $70,000 per unit — to purchase the two-building complex, property records show.
The buyer plans to increase rents to the market rate, according to a news release from the brokerage. Apartments in the complex have listed for $1.75 per square foot. The average rent in Dallas for an 860-square-foot apartment is $1,593, or about $1.85 per square foot, according to RentCafe.
Following a glut of multifamily development in the Metroplex last year, which squashed rents and increased vacancy, industry experts forecast rent growth of up to 3 percent in the Metroplex by the end of the year.
The complex, rebranded to Hart House after the sale, was built on almost 4 acres in 1963 and 1964. Its taxable value was appraised at $4.2 million last year.The buyer is the seventh owner of the complex in the last 25 years. Formerly called the French Colony, the complex was a TDHCA tax credit project and has been the site of at least one homicide.
