Savoy Equity Partners has closed on its second development site in Dallas’ Cedars neighborhood within a year.
The real estate firm, which is based in Dallas and invests in and develops multifamily properties, acquired an assemblage at the southwest corner of South St. Paul Street and Richardson Avenue that includes a former 8,400-square-foot Dallas Power & Light Building.
Savoy plans to build a more than 300-unit mixed-income apartment community and a screened parking garage on the 2.67 acres acquired from three sellers. It will keep the Power & Light building, intending to repurpose it as an amenity center for residents.
The Power & Light building is only one of four such structures in Dallas that once powered the city’s street cars, according to Barret Linburg, co-founding principal of Savoy.
Scott Lake and Jake Milner of Davidson Bogel Real Estate brokered the transaction.
Savoy specializes in integrating complex tax structures into its projects, and this particular site lies within an opportunity zone.
“We’re excited about this project’s potential to contribute to Dallas’s growth while preserving an important piece of the city’s history. We’re currently in the planning stages and look forward to sharing more details as the project progresses,” said Linburg.
The firm is in line to receive a more than $1.85 million grant from the City of Dallas for the apartment community’s development, which has a projected cost of about $83.5 million. Part of the conditions to receive the grant money include making half of the units available to renters with low and moderate incomes.
Savoy also acquired a site about two blocks away, which it purchased in December. It will construct a 76-unit building at the intersection of Corinth and Ervay, with plans to break ground in the third or fourth quarter of this year.
The Cedars neighborhood has a handful of massive projects on deck, including Hoque Global’s So Good District, located less than half a mile from Savoy’s new buy.
The development is expected to include hundreds of apartments, in addition to townhomes, a hotel and commercial space.
More planned development expected to spill over into the area includes the redevelopment of the Kay Bailey Hutchison Convention Center and a potential new life for Old City Park, among others.
