ShainRealty Buys Dallas Multifamily for $175,000 per Unit

Multifamily investors are quickly picking up Texas assets before the year ends.

ShainRealty Capital expanded its Dallas portfolio with a 226-unit apartment complex near Kessler Park.

The Los Angeles-based firm purchased Yorktown Luxury Apartments for $39.5 million, or $174,800 per unit, from TIAA’s Nuveen Capital, according to a release from ShainRealty. It will rename the property Infinity on Yorktown.

ShainRealty bought the asset with a $27.65 million mortgage from Arbor Realty Trust. It’s a five-year, interest-only CMBS loan that was locked in at a 5.88 percent interest rate. The loan to value rate on the mortgage was 70 percent. The sponsor will implement a low-income housing tax credit.

Berkadia’s Eric Calub, Caleb Jones and Paul Harris brokered the sale.

Now is the time to be bullish in the “depressed market,” managing partner Jonathan Shainberg said, while “others have fear.”

The property, developed in 2016 by Wood Partners, is at 660 Yorktown Street, adjacent to the Sylvan Thirty retail and multifamily development in West Dallas. It’s near the site of a future 45-acre, mixed-use project from Goldenrod Companies.

This is ShainRealty’s sixth Dallas purchase in three years. The firm has plans to continue expanding its holdings in the Sun Belt, it said in the release.

Industry experts are hopeful this week’s interest rate reduction will make financing more available for investment sales like these.

Investors acting now have the ability to lock in low prices and secure assets ahead of the next rent price cycle.

As of mid-November, rents in Dallas-Fort Worth had dropped three percent in the last year, according to a report from Partners Real Estate. That’s due to the historic surge in deliveries in 2024.

The Yorktown property has 12 vacant units, ranging from studios to three-bedrooms, according to online listings. Rent prices aren’t listed, but the complex is offering a $150 “welcome credit” to new tenants.