331-Unit Trianon's Sale Breaks Mid-Rise Record

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DALLAS-Dealmakers aren’t talking, but word on the street is the sale of the 331-unit Trianon in Uptown has just broken the city’s $156,000 per door record for mid-rise developments. High-priced sales in the region are being closely guarded due to aggressive property assessment rates that have owners running for cover in the non-disclosure state.

Market sources are comfortable saying, though, that the Uptown beauty, which delivered in third quarter 2006 and is already resting at 94% occupancy, has pulled at least $160,000 per unit in the pass from its joint venture developers to Windsor Realty Fund-III, which is controlled by the Boston-based GID Investment Advisors LLC and tied to CalPERS’ purse strings. The 4.17-acre French Provincial-style asset at 2820 McKinnon St. is assessed at $51.3 million, which breaks down to $154,984 per door.

Zom Rosewood LP, a marriage of Orlando-based Zom Cos.’ Texas division and Rosewood Property Co. of Dallas, was the seller. Neither Zom’s Texas chief, Kevin Wisdom, nor the buyer’s point man for the deal, Thad Palmer, returned telephone calls to GlobeSt.com to comment about the crown jewel’s exchange.

The Trianon, being renamed to the Windsor at Trianon, consists of a 317-unit, four-story building with structured parking and a second structure, positioned right across the street, with 14 “ultra-luxury” villas and private elevator access. The smallest unit is a 738-sf one-bedroom, one bath and the largest is a 3,102-sf three-bedroom, 3.5 bath penthouse. The unit average is 1,118 sf. Monthly rents begin at $1,385 and top out at $5,900.

Until now, the 232-unit Bryson at City Place, a 2.3-acre footprint at 2901 W. CityPlace Blvd., held the mid-rise record. Not only has the multifamily market changed dramatically since the Bryson’s September 2004 sale, but Dallas/Fort Worth has jumped to the top of investors’ buy lists because of its high growth, with roughly 310 people per day moving into the region, and low-cost buy-in in comparison to other US growth markets.

Zom has an in-house team to market what it decides to sell. In all likelihood, the Trianon was marketed to just a select few. In addition to its very deep pockets, the buyer was a likely candidate because it owns the 331-unit Windsor at Turtle Creek, situated just three blocks away at 2217 Ivan St. Assessed at $50 million, the Windsor at Turtle Creek was bought last September from ING Clarion Partners of New York City.

Windsor Realty Fund-III is marking its 10th year. To date, it’s spent $1.19 billion to acquire 34 properties with 10,853 units. GID has full discretion for acquisition and disposition, just like it does for Windsor Realty Fund-V, a four-year-old buying pool between GID and CalSTRS, the new owners of the 360-unit Trillium at Mountain Park Ranch in Phoenix.