LaSalle Investment Management has acquired Rienzi at Turtle Creek, an apartment community in Dallas. No financial terms were disclosed.
CHICAGO AND DALLAS — LaSalle Investment Management (“LaSalle”) today announced that its U.S. value-add fund, LaSalle Income & Growth Fund VII (“Fund VII”), has acquired Rienzi at Turtle Creek, a 152-unit high-rise rental apartment community in the affluent Turtle Creek submarket of Dallas, Texas.
LaSalle identified this as a unique opportunity for Fund VII to acquire a high-quality multifamily asset in a strategic market known for its strong population and job growth.
Joe Munoz, Chief Investment Officer for LaSalle’s Income & Growth Funds, commented,
“Rienzi at Turtle Creek aligns well with the investment strategy of our U.S. value-add fund series, and we’re thrilled to add this property to the Fund VII portfolio. This transaction offers a compelling opportunity for us to acquire a well-located, high-quality multifamily asset at a discount to replacement cost and execute a thoughtful capital improvement plan to realize upside potential.”
Summit Walia, Managing Director of Acquisitions at LaSalle, stated, “Rienzi at Turtle Creek was particularly attractive to us in that it was originally constructed as a condominium, offering condo-level finishes and amenities at competitive rental rates. By addressing deferred maintenance and completing renovations to the common areas and unit interiors, we believe we can deliver a desirable product that drives rent growth while offering rates that represent a significant discount to those at comparable new construction high rises in the area.”
Built in 2002, Rienzi at Turtle Creek features large floor plans averaging 1,300 square feet and boasts attractive finishes including 10- to 12-foot ceilings, extra-large walk-in closets, granite countertops, recessed lighting, hardwood flooring, crown molding and balconies in the majority of units. Community amenities include a swimming pool and spa; a fully equipped 24-hour fitness center; a garden terrace with grilling area; an on-site dog park; concierge services; controlled garage access; and valet parking. The property is located in close proximity to major employment centers – including Uptown and Downtown Dallas, Medical District, Baylor University Medical Center and Dallas Love Field – as well as abundant entertainment and retail options including Reverchon Park, Knox Henderson and The Shops at Park Lane. The adjacent Uptown neighborhood has also seen significant development in recent years, with an additional 2.3 million square feet in office development due to deliver by 2020, which has resulted in an influx of new retail and restaurant amenities.
The Dallas-Fort Worth (“DFW”) Metroplex is a thriving metropolitan area with a population of 7.4 million, that boasted a gross metro product (“GMP”) of $535 billion in 2017, marking a 6.3 percent increase on its GMP in 2016, according to Federal Reserve Economic Data. The DFW Metroplex boasts strong job growth, having added 109,400 jobs between October 2017 and October 2018, and the metro is home to several Fortune 500 companies including Exxon Mobil, AT&T, American Airlines, Tenet Healthcare, Southwest Airlines, Kimberly-Clark, Texas Instruments, D. R. Horton, Dean Foods and Dr. Pepper Snapple, among others. The robust population size combined with sustained job growth and strong presence of top corporations support Dallas’ multifamily market and drive consistent demand for high-quality product.
About LaSalle Income & Growth Funds
The LaSalle Income & Growth funds are the firm’s flagship closed-end U.S. value add fund series, with the first fund in the series launched in 1996. Aggregate fund series capital commitments total $3.4 billion, with approximately $6 billion invested in over 100 investments across all funds in the U.S. series. Fund VII seeks to acquire under-managed, under-capitalized, or mispriced assets to be repositioned as core assets. Property level-investment strategies include lease-up, renovation/repositioning and ground-up development. Fund VII began acquiring assets in 2016.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages over $65 billion of assets in private and public real estate property and debt investments as of Q4 2018. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit http://www.lasalle.com, and LinkedIn.