When it comes to commercial real estate investments, Dallas-Fort Worth continues to show promise. According to Cushman & Wakefield, the Dallas market saw solid office demand, enjoying positive Class A absorption of 159,480 square feet during the second quarter of 2020–the height of the pandemic. In the third quarter of the year, Dallas experienced population growth of 124,803 people year-over-year, nearly 30,000 of which took place in Q3 alone.
California-based office asset manager KBS Commercial Real Estate saw those numbers as an opportunity to further expand its DFW presence with its first apartment complex in DFW. Along with Nashville-based developer Southern Land Co., the firm recently completed Phase 1 of their first joint venture, Novē at Knox, a hospitality-driven apartment tower in the trendy Knox-Henderson neighborhood.
“We own several office properties throughout the Dallas market and have seen the Knox-Henderson area transform over the last several years. It is a dynamic and vibrant neighborhood that boasts a live-work-play environment that is attractive to high-end renters in the area,” KBS Asset Manager Brett Merz told D CEO.
Located at 3031 Oliver Ave., the project offers sweeping views of the Dallas skyline. It also incorporates amenities such as a concierge and 10,000 square feet of private open space connected to McKinney Avenue, as well as parking, pool with a large sundeck and outdoor kitchen, private gazebos, and a fitness center with a yoga studio, technology center, and a dog park and washing station.
KBS, which owns eight DFW office properties, including 3811 Turtle Creek, says the same office amenities that drive talent to the office are part of a multifamily development trend.
“Individuals want walkable environments where they have easy access to everything they need. These are elements we seek in our office properties, as well as in this apartment development,” he said. “The Dallas-Fort Worth region demonstrates great promise as we navigate our way through the pandemic. “KBS’ decision to invest in a ground-up multifamily development with resort-style features like Novē at Knox meets the growing demand for luxury apartment units in this market.”
The 309 units at Novē at Knox contain a mix of layouts, ranging from studios to three-bedroom units and penthouses.
The property is currently 18 percent leased, Merz said. Units start at $1,650 per month.
Construction on the 19–story development is expected to wrap up at the end of the month, after some pandemic-related delays.