Berkshire Group Grabs 325-Unit M-F Asset in Dallas’ Medical District
- Dec 29, 2014
Berkshire Group wraps up a busy year of buying with the acquisition of Aura Medical District, a 325-unit apartment community in Dallas’ booming medical cluster. Berkshire grabbed the asset, now rebranded Berkshire Medical District, from its developer, Trinsic Residential Group.
The garden-style property first opened its doors earlier this year, consisting of 10 three-story buildings and two two-story structures featuring flats and townhouse units. It made its debut in the right place, as the Medical District–a submarket just outside of downtown encompassing Parkland Hospital, Children’s Medical Center and UT Southwestern University Hospital–is in growth mode, courtesy of a bevy of investment endeavors. And when it comes to acquisition opportunities, growth is one of the key factors for Berkshire.
“We believe the submarket around Berkshire Medical District is undergoing revitalization. Employment growth is expected from anticipated expansions at the area’s major medical centers and increased air traffic flying in to Love Field, and we are seeing new retail moving in,” David Olney, managing director and head of multi-family investments for Berkshire, said in a prepared statement.
Across Dallas, anticipated growth and strong fundamentals are buoying the apartment sector, which experienced a 5.3 percent vacancy rate in the third quarter, marking a 13-year low despite the increasing number of new units coming online, according to a report by Marcus & Millichap Real Estate Investment Services.
However, there are many markets that meet Berkshire’s investment criteria these days. Earlier this month, the investment management company acquired Crescent Terminus, a brand new 355-unit apartment community in Atlanta’s coveted Buckhead submarket. Other purchases this year include assets in metropolitan Boston and Phoenix. Next year, it will be more of the same.
“For 2015, we expect to continue focusing on properties in markets with favorable expected growth prospects and strong underlying fundamentals, as well as close proximity to major employers,” Olney told Commercial Property Executive.