DALLAS, Nov. 28, 2023 – CastleSquare’s capital markets group announced today it has arranged a $7.00 million in preferred equity for the acquisition of Villas del Zocalo 1, a multifamily complex in the Northwest submarket of Dallas, Texas.
CastleSquare worked on behalf of the buyer, a Northeast real estate firm, to secure the preferred equity through a private capital source. The sponsorship utilized a Freddie Mac 5 year fixed rate loan for its senior financing, provided $6 million of common equity, and CastleSquare brought the $7.00 million in preferred equity to fill out the capital stack.
Built in 1985, Villas del Zocalo 1 is located at 3130 Webb Chapel Ext., Dallas, TX 75220 and consists of 206 one- and two-bedroom apartments. Apartment amenities include a clubhouse, dog park, grilling stations, swimming pool, and playground.
“We are excited to begin the execution of our value-add strategy to this 100% classic and very stable asset. We will renovate the exteriors, the amenities, and the interiors over the next 3 years of ownership. Improving the community for the residents while also maintaining the affordability quotient is important to our vision and social impact for workforce housing in TX” said the sponsorship’s CEO. “Working with Michael Khalilzad and CastleSquare was an absolute pleasure. The detailed communication, expedited timelines and overall professionalism was top-notch. We look forward to many more transactions together in the future”.
The CastleSquare Capital Markets team representing the borrower was led by President Michael Khalilzad and Director Alanna Wojciechowski.
“It was a pleasure to be a part of this transaction and working with a sponsorship team that has a good pulse on the local market with numerous performing assets in close proximity. This property is positioned to provide significant long-term value and add to the firm’s already successful track record. We look forward to working with the sponsor on additional transactions and initiatives as they continue to grow their portfolio in Texas” said Michael Khalilzad.
About CastleSquare
CastleSquare is a leading boutique capital markets firm and direct investor specialized in multifamily real estate. The firm’s capital markets group has a wealth of experience structuring and placing debt and equity in multifamily real estate acquisitions, ground-up developments, and recapitalizations. CastleSquare has more than 200 capital sources, including private fund managers, family offices, REITs, pension funds, insurance companies, and national commercial banks, offering best-in-class solutions for financing needs. For further information, visit CastleSquare.com
