267-Unit Ashton Racks Up $103M Record-Setting Sale

DALLAS-Hanover Property Co. and a frequent buyer of its product, Sentinel Real Estate Corp., have closed on the record-breaking sale of the 267-unit Ashton, an eight-time award-winning prize in Uptown that had investors lining up for the five-star deed long before its completion. Sources say the final price surpassed $103 million.

The Houston-based Hanover handed off a 67%-leased, 21-story trophy at 2215 Cedar Springs Rd. The 2.2-acre stately development, across the street from the Crescent and beside the Ritz-Carlton Residences, is the prima donna of Hanover's merchant-build portfolio. "It was on the market a very short time because we had people coming to us before it was finished wanting to buy it," says Edward Hamilton, managing regional partner for Hanover. "It sold faster than most." In selecting the winner of the six-month-old tower, he tells GlobeSt.com that "we looked at our history with our previous buyer."

Designed by Gromatzky Dupree & Associates, the Ashton has been compared to Madison Avenue residential product. Its location is deemed priceless in Dallas/Fort Worth circles. "That's a triple A site," one source says. "When you've got the amenities of Crescent sitting there, that says everything. That's a great synergy." The Ashton's near $290 per sf sale beat the old record by roughly $80 per sf.

Hamilton admits the development team "was very fortunate to have landed that particular site." And though Hanover is prepping for a June groundbreaking on the 229-unit 1900 McKinney in the same neighborhood, the Ashton will remain one of a kind. "We have some with Ashton-like qualities, but we wouldn't copy the building," he stresses.

Sources say Hanover invested $187,000 per unit into the construction to get a return of nearly $386,000 per unit at sale time. It's not likely at this time, but should Sentinel decide to condo it, sources believe it's possible to achieve $475,000 per unit given the location and quality. "It's the nicest rental building I've ever seen," another source says.

Local experts believe Sentinel will sit tight for a year to 18 months before deciding whether or not to go condo. Hamilton says Sentinel has yet to convert any of its developments and doesn't foresee that in the Ashton's future.

The Ashton's rent runs from $1,700 to $3,800 per month. Units, averaging 1,464 sf, go from 900-sf one-bedroom floor plans to 3,319-sf three-bedroom penthouses, attracting a corps of celebrity tenants. Its royalty-style amenity package includes guest suites for visitors, rooftop pool with aqua-lounge and a private dining and wine room.

Sentinel spokesman Ed Simon says the New York City-based private investment group doesn't discuss its deals. Brokering the deal were CB Richard Ellis powerbrokers Mark Stymiest, senior vice president, and Ryan S. Reid, first vice president, both in Dallas; G. Craig LaFollette and J. Todd Stewart, both senior vice presidents in Houston; and Jay H. Massirman and Sean P. Deasy, both executive vice presidents in Miami and Ontario, respectively. None of the brokers could be reached for comment prior to press time, but Hamilton says Sentinel did have some competition in the race, particularly from condo converters.