Thank you for sharing!

Your article was successfully shared with the contacts you provided.

[IMGCAP(1)]DALLAS-A 153-unit class C complex on a 5.33-acre corner in the Medical District has caught the eye of a major developer in the first round of quiet showings. After Wednesday, the deal’s broker plans to knock on more doors.

The early look is over the land and not really about the 95%-leased San Carlos Apartments at 2516 New Orleans Place. Joshua Shatz, principal of Dallas-based Custom Properties LLC, tells GlobeSt.com that the seller of record, San Carlos Associates LP of Dallas, is hoping to latch onto a co-developer deal to rework the dirt into a residential and retail redevelopment.

“This property will be able to get a zoning change for a mid-rise,” Shatz says. “That’s what we think and that’s our expectations.”

The owner acquired the complex two years ago, buying into a redevelopment pocket being spurred by Parkland Hospital’s expansion plan. [IMGCAP(2)]In addition, the complex practically neighbors Children’s Medical Center and within blocks of an under-construction Dallas Area Rapid Transit station. And right across the street is 5225 Maple Ave., where the top rent quote is $1,375 per month.

Shatz says San Carlos Apartments is being marketed to just a select few for roughly $9 million, with developers at the top of the list. And, he’s not ruling out an outright sale although he believes the real opportunity lies in the dirt. He adds that Parkland’s expansion will create “the right traffic pattern” and demand for residential and retail space.

To keep cash flowing, he says the owner is still signing leases for the mix of efficiencies and one- and two-bedroom apartments, which average 894 sf. The average rent is 80 cents per sf. “At this point, we don’t want cash flow to suffer,” Shatz says. “But, we think it’s just a great opportunity. It’s just the timing of it.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.