Behringer Harvard Opportunity REIT II Acquires Dallas Area Property
Non-traded REIT, Behringer Harvard Opportunity REIT II (Opportunity REIT II), has recently acquired Lakewood Flats, a multifamily community in Lakewood, Texas, a submarket of Dallas. The purchase price for the property, excluding closing costs, was $60.5 million, of which $27 million was paid in cash, funded with proceeds from asset sales, and the remaining $33.5 million was provided by a mortgage loan from The Prudential Insurance Company of America.
Located at 7425 La Vista Drive, near the intersection of East Grand and Gaston avenues, Lakewood Flats consists of 435 units. It provides convenient access to the Dallas central business district, five miles away and has direct access to the Santa Fe Trail for hiking and biking.
Constructed in 2013, the property sits on 13.5 acres of land and contains approximately 339,000 net rentable square feet.
The property has 318 one-bedroom apartments that have an average size of 645 square feet and 117 two-bedroom apartments with an average size of 1,141 square feet.
Amenities at Lakewood Flats include a game room, fitness center, business center, two resort-style pools, and a clubhouse, which features a lounge and gourmet kitchen.
As of October 7, 2014 Lakewood Flats was 97% leased.
“Lakewood Flats provided us with an attractive opportunity to acquire a recently constructed, stabilized and cash-flowing asset in a desirable infill market with strong fundamentals and high barriers to entry,” commented Michael O’Hanlon, chief executive officer of Behringer’s opportunity platform. “This is the best-in-class asset in a submarket with high apartment occupancy and limited new supply. We expect Lakewood Flats to continue to benefit from strong demand for a central living option priced lower than many multifamily communities in the nearby Knox/Henderson and Uptown Dallas submarkets,” he added.
Sponsored by Behringer and formed in 2007, Opportunity REIT II acquires and operates commercial real estate and real estate-related assets. Particularly, it focuses on commercial properties that have significant possibilities for capital appreciation, such as those requiring development, redevelopment, or repositioning, those located in markets and submarkets with high growth potential, and those available from sellers who are distressed or face time-sensitive deadlines. Its investment strategy also includes investments in real estate-related assets that provide opportunities for higher current income.
As of June 30, 2014, the REIT had 12 real estate investments, holding interests in six multifamily/student housing investments, three office investments, one hospitality investment, one self-storage investment, and one mezzanine loan.
