North Texas’attractive multifamily residential real estate market has drawn in another California-based investor. Los Angeles-based real estate investment group Banyan Residential has broken ground on a $59 million development—the first of two apartment communities it’s planning in Dallas’ North Oak Cliff neighborhoods.
Located at 1710 N. Beckley Ave., the multifamily project will bring 279-unit to the neighborhood. The property is being developed in partnership with the national development company Milhaus, which is also making its grand entrance into the DFW market. The site is located within a Qualified Opportunity Zone (QOZ), established by the Tax Cuts and Jobs Act of 2017 to spur economic development and job creation in underserved areas across the country.
“A lot of our investments today in the multifamily space have been in Opportunity Zone deals,” Max Friedman, partner at Banyan Residential, told D CEO. “It’s essentially a tax deferment program when you invest capital in these specific areas.”
Bishop Arts District’s tag as a QOZ market certainly has played a role in the influx of development in the area. However, the neighborhood has other benefits for both developers and investors like Banyan Residential, including its proximity to the business sectors in downtown Dallas.
“When we think about new markets and what makes the most sense, there are a few things that we look for. One is demographic trends, and one is job growth and job creation,” said Friedman. “Dallas really fits the bill with both of those key parameters.”
The Banyan Beckley development is one of many new projects in the Bishop Arts District that will mark a drastic change in the neighborhood’s reputation. The influx of developments has already transformed the once purely residential area in North Oak Cliff into a trendy place to see and be seen.
“It’s one of the coolest neighborhoods in Dallas. It’s got more of a residential feeling, low-rise type of environment that still has a lot of really unique neighborhood amenities,” Friedman said.
The area’s one drawback: the specific zoning laws and general space constraints make building multifamily developments in the once single-family oriented neighborhood a challenge. A 55-unit project from Mintwood Real Estate, which is in the works, dealt with zoning height restrictions, and Banyan Beckley will have to comply with local setback requirements while trying to remain financially viable within the small lot they have for development. (Read more here about how industry veterans Katy Slade and Nick Venghaus are investing in the neighborhood).
“We wanted to monetize the property in a way that was maybe a little bit different than some other local developers,” said Friedman said about the 2.3-acre site.
The spirit of the neighborhood was top of mind for Banyan Residential when they were designing the property. “With respect to the design, there were a few things we were trying to accomplish,” Friedman said. “One was trying to pay homage to kind of the quasi-industrial nature of the Bishop Arts neighborhood.”
As Friedman put it, the development will feature “handsome” design elements, including the use of brick and the addition of a downtown-facing sky deck. Milhaus and Banyan are working together with JHP Architecture, multifamily construction firm Oden Hughes, Vignette Interior Design, and SPIARS Engineering to bring North Beckley to market.
Additional amenities include an outdoor pool, a fitness center, communal grilling stations, and the sky deck with views of both downtown and the Trinity River.
Construction is set to begin in May and is expected to be completed by 2023.
The duo will start construction on its second project, a $62 million 289-unit multifamily at 2020 N Beckley Avenue, later this year.