Cortland, a national multifamily investor, developer, and manager, and Declaration Partners Real Estate, a private investment firm, have recapitalized Vero Capital’s 3700M, a 381-unit high-rise in Uptown Dallas. Financial terms were not disclosed.
The transaction is part of a programmatic joint venture between Cortland and Declaration Partners launched last year to deploy preferred equity capital into multifamily properties amid market disruption due to volatile interest rates in recent years. Oxford Properties, a global real estate investor, developer, and manager, provided senior financing for the transaction.
The partnership aims to solidify 3700M, which offers convenient access to retail, dining, entertainment, and job centers, as a trophy asset in the market by upgrading amenities and renovating units. 3700M features studio, one-, and two-bedroom floor plans as well as an array of amenities, including a 24-hour TechnoGym fitness center, a yoga studio, coworking space, and a covered dog park.
“This investment with Declaration is exactly what we envisioned when we formed this partnership,” said Jeff Gragnolati, executive vice president of capital markets for Cortland. “The investment underscores the robust synergy between our teams and validates our preferred equity strategy’s effectiveness in delivering exceptional apartment homes. We believe 3700M is well positioned to be a prized asset in the Dallas Uptown market.”
The investment expands Cortland’s presence in the Dallas-Fort Worth metroplex. It now owns, operates, and lends to 37 communities in the area as part of a Texas portfolio comprising 60 properties with nearly 22,000 units.
The joint venture is focusing on properties across Cortland’s key markets in the Sun Belt, Midwest, and Mountain West regions. The investments, ranging from $5 million to $35 million, are subordinate to senior lenders’ debt and target a variety of opportunities, from value-add and ground-up developments to stabilized properties and those in lease-up.
“We are thrilled to consummate this venture with our partners at Cortland,” added Ron Dalal, partner at Declaration Partners. “This investment reflects the strength and high standards of our partnership as we source opportunities in search of what we believe to be the most attractive risk-reward situations in the market. We are excited to continue partnering with a specialist like Cortland as we continue to seek to invest in high-quality multifamily assets in attractive submarkets.”
