Developers say they are a step closer to having 232 renovated affordable apartment units available for rent in the Oak Cliff area on Kiest near Cockrell Hill.
Funding has closed on the acquisition and $35.2 million renovation of Estrella at Kiest, 16 two-story buildings located on a 10.5-acre site, according to ZNE Capital, which will own and operate the property along with LeavenWealth (the partnership is known as American South Fund Management). The collaborators report a focus on repairing damages to create more available homes in an environmentally responsible manner.
Repairs to 25 units battered by the 2021 freeze and an additional 24 ravaged in a 2021 fire — as well as other building upgrades — are underway, according to the owner-operators.
Once renovations are complete, the units — one, two and three-bedroom options — will be available at rental rates that are affordable to families at less than 80% of the area median income level.
“Transitioning the development to a green, sustainable projects is central to the company’s business philosophy,” says a representative from ZNE. “Green-focused” construction will include the installation of roof-mounted solar panels, low-flow water fixtures and electrical upgrades to increase energy efficiency and promote immediate building savings and lower future costs to tenants.
“Estrella at Kiest continues ZNE Capital’s mission of decarbonizing existing affordable housing communities,” company president Owen Barret says. “This project is living proof that you can decrease the carbon emissions from the built environment and preserve affordable housing.”
Barret points out that the Dallas metro area recently ranked second in the country for overall population growth within a metro area between July 2020 and July 2021. (And that Rents in Dallas have seen a steady increase and show little sign of easing up anytime soon.)
ASFM managing partner Deborah La Franchi says that, especially in Dallas’ tight housing market, it is crucial to preserve and renovate existing housing to create affordable living.
“ASFM is very pleased to finance this impactful project,” La Franchi says. “Estrella at Kiest provides much needed affordable housing and directly aligns with our goal of making a difference for low-income residents and communities throughout the South.”
Since 2018, impact funds managed by ASFM have made 18 investments in Texas, Georgia, Alabama, North Carolina, South Carolina, Louisiana and Arkansas totaling $80.0 million and over $446 million of project costs to date, according to the announcement.
This is the first multifamily investment in Dallas for ASFM, according to the announcement.
