Chicago-based Origin Investments and Dallas-based StoneHawk Capital Partners released plans for a $57.8 million multifamily development south of Dallas. The announcement marks the debut of the firms’ joint venture focused on multifamily development projects in the Southwest.
The project is in an opportunity zone – areas created as part of the Trump administration’s 2019 Tax Cuts and Jobs Act which provided tax breaks to investors. With real estate developers and investors flocking to Texas, opportunity zones are dwindling, especially in the Dallas-Fort Worth area. The proposed 2.64-acre site of The Hendricks is located in the Cedars submarket, just south of Downtown Dallas.
The Hendricks will be a five-story building wrapped around a communal space. It will consist of 285 Class A units, including 64 studios, 177 one-bedrooms and 44 two-bedroom apartments. Community amenities will include a resort-style pool, two-level clubroom and lounge, rooftop deck, fitness/yoga studio, golf simulator, dog park, dog wash, secured access and elevators, according to the Thursday press release. The development is expected to break ground in the third quarter of 2022.
“The Hendricks will be part of a transformational wave of activity bringing jobs and opportunities to this area of Dallas,” said Dave Welk, managing director, Origin Investments. “We expect to leverage the appeal of this emerging area and a limited supply of units to satisfy the expected demand for market-rate apartments.”
The joint venture touted the project’s proximity to the Farmers Market District of Downtown Dallas and SoGood @ Cedars, a mixed-use development set to be completed with commercial, retail and entertainment spaces. The development will be anchored by an innovation center offering resources and opportunities for startups and entrepreneurs.
StoneHawk has become an established Dallas-Fort Worth-based developer since its formation in 2013. The Hendricks represents its seventh development in the market and is currently in varying stages of development with two other 5-story projects, The Huntley in Fort Worth and The Beckley in Dallas.
The Hendricks is Origin Investments’ seventh project in Texas and its 10th project in Origin’s Qualified Opportunity Zone Fund I. The project marks the firm’s first ground-up development in the Dallas area. Earlier this year, the Chicago-based firm raised $265 million for its QOZ Fund I.
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