Deep Ellum Lofts Sold
DALLAS, TX - December 26, 2007 --
Deep Ellum Development, Ltd. was created in 1995 to
build 133 loft apartments in three existing historical warehouse
buildings (“Deep Ellum Lofts”) located at the east end of Elm Street
near Baylor Medical Center.
All three buildings received historical status with
Historical Tax Credits as well as City of Dallas tax abatements.
The joint venture was assembled by HSM executives,
David Donosky and the late Mike McAuley.
In May 1997 a grand opening was held that was
attended by then Mayor Ron Kirk and numerous other dignitaries as
this was the first project to be funded under the City of Dallas In
Town Housing program. In 2000, the Continental Building
received the Residential Rehab award from Preservation Dallas.
By the end of 2003, Deep Ellum Lofts was maintaining
a 90% to 93% occupancy rate, but the cities’ affordable housing
requirement kept 30% of the units below market rates.
During this same period, the City of Dallas offered
the opportunity to their second lien for a substantial discount.
The purchase of that note would allow Deep Ellum Lofts to remove the
affordable housing component and move all rents to market rates.
The limited partners in November 2003 asked HSM to be
general partner and reorganize the Partnership.
Over the next two years, the new general partner
increased rents to market rates, improved the maintenance operations
and improved the ambience of the community that Deep Ellum had
become for the residents. During this period, occupancy moved
from approximately 85% to a consistent 90% to 95%.
In November 2007 the general partner received a
lucrative proposal for the purchase of the property. The sale
was finalized on December 21, 2007.
The transaction was handled by Ron Belanger and
Richard Keeling with Henry S. Miller Commercial under the direction
of Greg Miller, President of Miller Realty Investment Partners.
