Northmarq arranges sale and financing of Residence at Lake Highlands in Dallas, Texas

DALLAS, TEXAS (November 9, 2021) – Taylor Snoddy, managing director, Philip Wiegand, senior vice president and James Roberts, senior vice president of Northmarq’s Dallas investment sales team arranged the sale of Residence at Lake Highlands. The 247-unit garden-style multifamily property is located at 9857 Audelia Road in Dallas, Texas.

The Northmarq investment sales team represented the seller, Nitya Capital in the sale to the buyer, Rockfarmer Properties.  

“Residence at Lake Highlands boasts a great location in the heart of the Lake Highlands submarket. Our marketing was able to identify a buyer in a 1031 exchange. Rockfarmer closed the transaction in roughly 45 days. They plan to implement a high-end renovation across the asset to align with neighboring communities,” said Snoddy. 

Will Hancock, vice president in Northmarq’s Dallas debt/equity office, arranged a $24.5 million bridge loan for the property. The transaction was structured with a 3-year interest only term. Northmarq secured the bride loan for the borrower through its relationship with a repeat bride loan lender. 

“We were able to secure the most competitive rate at the leverage request via our repeat bridge loan lender,” said Hancock. “This ensured that all parties deadlines in relation to closing could be met.” 

The community sits on more than seven acres and features frontage along Audelia Road. The community is also within a mile of Interstate 635, which accommodates 195,000 vehicles per day and serves as one of the main transportation corridors throughout the DFW metroplex. The property is 1.25 miles south of the LBJ/Skillman Dart Rail Station, affording residents multiple transportation options. 

Residents enjoy direct access to numerous neighborhood services including Lake Highlands Town Center, The Shops at Park Lane, Town Creek Shopping Center, Skillman Village and Royal Highlands Plaza. Residence at Lake Highlands is zoned within the highly desirable Richardson Independent School District – which consistently ranks as a top school district in the DFW metroplex – catering a family-oriented tenant base seeking a premier school district.

The Dallas-Fort Worth market continues to lead the country in multifamily transaction activity. Strengthening property fundamentals supported a spike in sales velocity during the second quarter, with transactions occurring throughout nearly every submarket in the region. Cap rates have compressed below 4 percent, as the competition to acquire properties has intensified. Other factors pushing cap rates lower are the expectation for healthy rent growth and improving occupancy levels this year. After owners focused on tenant retention in 2020, rent growth is expected to reach its highest rate in a decade. Read more information in Northmarq’s Q2 Market Report.