449-Unit Trophy Sale Brings Y-T-D's Highest Per Unit Price

DALLAS-Des Moines-based Principal Capital Real Estate Investors is waving the deed to a trophy multifamily buy in what is reputed to be the second-largest sale so far this year in the Dallas-Ft. Worth region. No one’s talking the final selling price for the Phoenix, but it far exceeds its $35.7-million appraised value, an inside source tells GlobeSt.com.

What is a near certainty in brokers’ circles is that the Phoenix has brought the highest per unit price in the region’s year-to-date sales. Sources say only Atlanta-based Post Properties’ 908-unit Post Shore in Las Colinas has brought more this year from a buyer, a deal that some insiders say reaped close to $70 million.

The 449-unit Phoenix is best known for its rise from the ashes of the historic art deco Dr. Pepper plant that kept a date with a wrecking ball despite a long and hard battle by preservationists. The luxury complex delivered last year, just two years after Phoenix-DP Ltd., a Dallas-based limited partnership led by J. Blake Pogue, bought the 15-acre Dr. Pepper property at the intersection of Greenville Avenue and Mockingbird Lane.

Dan Bryson, senior director of Dallas-based Holliday Fenoglio Fowler LP, brokered the sale. The Phoenix is now part of the diversified asset mix within the Principal Life Insurance Co.’s Real Estate Separate Account, a $1.4-billion, open-ended, commingled private equity retirement fund.

“It is a unique asset for Dallas, given it is within a few hundred yards of a grocery store, light rail and high-end retail,” says Mark Hanrahan, Principal’s real estate director. “From the property’s current success, it is clear there is definitely interest from renters and we look for it to perform very well over the long term.”

Situated at 5555 E. Mockingbird Lane, the Phoenix has a gross leasing area of 434,340 sf and 7,365 sf of retail space. It also sports an art deco design and boasts amenities in keeping with its high-profile standing in the marketplace.