How Multifamily Pipelines Look In Uptown, East Dallas

As the urban core densifies more this cycle than ever before, the submarkets surrounding Downtown Dallas become more attractive to multifamily developers. Two of those submarkets — Uptown and East Dallas — have more units under construction than any others.

“In East Dallas, high-end projects are performing really similar to Uptown [projects],” CoStar Group Senior Market Analyst of DFW David Kahn said. High-end developments are leasing well, anything from 15 to 20 units a month in both submarkets, according to CoStar.

“But we’re starting to see higher concessions. What was one month [free rent when signing] last year is 1.5 or two months this year,” Kahn said. 

East Dallas is a larger and more complex market than Uptown. East Dallas is roughly defined by U.S. 75 to the west, LBJ to the north, Dallas city limits to the east and Deep Ellum to the south. The area has young and trendy areas like Lower Greenville and established residential areas like Lakewood. The multifamily market has more history to it, meaning much of the product is Class-B or value-add. 

Of the approximately 53,000 units in East Dallas, about half are Class-B. There are 3,959 units under construction in the area, according to CoStar. 

“East Dallas is mostly mid-rise wraps that’s more expensive than the suburban product, but still at a discount to Uptown,” Kahn said. “We’re seeing a lot of the major players making a stake there — developers like Trammell Crow, Hanover Co., Mill Creek Residential, Encore Enterprises, JLB Partners.”

Meanwhile the newer Uptown submarket is making more of a luxury play. Kahn’s only concern with the healthy market is communities renting units for $3/SF. 

“Until The Taylor delivered around $2.50/SF in 2014 and Brady delivered around $3/SF in 2015, we never saw that. Now we’re basically about to quadruple the amount of high rents in this small area in a couple of years.”

As luxury communities like One Uptown, M-Line Tower, Park District, The Katy and Ascent Victory Park come online, Kahn expects winners and losers to shake out.

Within the area confined by Dallas North Tollway, U.S. 75, Woodall Rogers and Park Cities, there are 3,415 units under construction, CoStar reports. 

Here is a look at every market rate multifamily project under construction in each submarket, according to CoStar. 

Uptown

• Genesis Real Estate Group’s The Katy will deliver 463 units in 2017. 
• Forest City Realty Trust and Cityplace Co.’s Forest City Cityplace Apartments will deliver 389 units in 2018. 
• Trammell Crow Residential’s Alexan Maple will deliver 340 units in 2019.
• StreetLights Residential’s The Christopher will deliver 309 units at the Union Dallas in 2018. 
• Lennar Multifamily Investors’ The 23 will deliver 285 units in 2017. 
• Trammell Crow’s M-Line Tower will deliver 261 units in 2017. 
• Trammell Crow’s The Residences at Park District will deliver 228 units in 2018. 
• Provident Realty Advisors' The Katy will deliver 215 units in 2017. 
• Mill Creek Residential’s Modera Turtle Creek will deliver 207 units in 2018. 
• Mill Creek Residential’s Modera Howell will deliver 190 units in 2018.
• StreetLights Residential’s The McKenzie will deliver 183 units in 2018. 
• Trammell Crow Residential’s Alexan Katy Trail will deliver 159 units in 2018. 
• Wood Partners’ 28TwentyEight will deliver 94 units in 2017. 
• Leon Capital Group’s Magnolia Station will deliver 60 units in 2017. 
• Price Realty Corp.’s Hartford Townhomes Phase 2 will deliver 32 units in 2018.

East Dallas

• Trammell Crow Residential’s Alexan Lower Greenville will deliver 475 units in 2019. 
• Hanover Co.’s Hanover Midtown Park will deliver 422 units in 2018.
• JLB Partners’ The Ash at the Branch will deliver 402 units in 2017. 
• Mill Creek Residential’s Modera Hall Street will deliver 340 units in 2018. 
• Provident Realty Advisors’ Midtown Park Apartments will deliver 302 units in 2017. 
• Trammell Crow Residential’s Alexan Ross will deliver 292 units in 2018. 
• Commodore Partners’ The Mark at Midtown Park will deliver 275 units in 2017.
• Argyle Residential’s Lookout at Lake Highlands Town Center will deliver 259 units in 2017. 
• Encore Enterprises’ Encore Swiss Avenue will deliver 255 units in 2018. 
• JLB Partners’ B&F Flats Phase 2 will deliver 241 units in 2017. 
• Stillwater Capital Investments’ The Ellison will deliver 240 units in 2018. 
• Trammell Crow Residential’s Alexan Henderson Phase 2 will deliver 200 units in 2017. 
• Stillwater Capital’s The Atwood Phase 2 will deliver 140 units in 2017. 
• Zale Properties’ Haskell Flats will deliver 62 units in 2017. 
• Prevarian Cos.’ Davy Crockett School Renovation will deliver 54 units in 2017.