Andalusian Gate Apartments

Dallas, Texas

Historical Transaction
Units: 296
Total Capital: $21.6 million
Equity Invested: $2.8 million
Status: Sold
Realized Multiple: 2.2x
Realized IRR: 27%

Andalusian Gate is a 296-unit apartment project that was built in 2000. Situated on a 17-acre site, the project includes 288,554 net rentable square feet in 21 two and three story buildings with a clubhouse/leasing center, entertainment room, business center, fitness center, and resort style swimming pool with volleyball area. Andalusian Gate lies at the northern edge of Dallas in the neighborhood known as the Tollway Corridor; which at the time of acquisition, had enjoyed rapid growth over the previous decade due to its quality of life and accessibility. The neighborhood enjoys easy access to two major thoroughfares: the Dallas North Tollway and George Bush Freeway (Interstate-190) which provide residents quick and easy access to major employment, shopping, and entertainment centers, including the Galleria/LBJ Corridor, Legacy Park, the Dallas Central Business District, and the Telecom Corridor. The property was sold in November 2003.

Opportunity

  • Off-market recapitalization opportunity for high-quality, well-located multifamily asset.
  • Total consideration included new capital of $2.8 million which was used to pay off mechanics and workmen’s liens, construction cost overruns and pay down of the existing debt to $18.0 million which was assumed by the new partnership
  • Limited partners of the seller were allowed to stay in the deal with the potential to recover their equity and a return on their equity after new investors received certain target IRR’s.