North Dallas apartment complex owned by Blackstone up for auction

A North Dallas apartment complex owned by the alternative asset manager Blackstone went up for auction on Tuesday. 

Blackstone foreclosed on a $90 million loan secured by the North Dallas apartment complex, according to Dallas County documents filed in mid June. 

The apartment complex, called 75 West, is one of several Dallas-Fort Worth apartment complexes set to be auctioned off on Tuesday.

The apartment complex tied to Blackstone is a 490-unit property at 7927 Forest Lane, near Medical City Dallas. The apartment complex’s website lists a studio unit at about $1,300 per month and some three bedroom apartments at nearly $2,400 per month. 

Blackstone is the world’s largest alternative asset manager, investing in private equity, real estate, hedge funds and other assets. Blackstone is one of the large institutional investors that would be restricted from buying single-family homes if a new federal housing bill is enacted.  

Blackstone didn’t respond to requests for comment before the publication of this article.  

Blackstone has owned the apartment complex through an entity called 7927 Forest Lane (TX) Owner LP since 2021. The Dallas Central Appraisal District valued the property at $91 million for tax purposes. 

The sale of the North Dallas apartment complex takes place Tuesday from 10:00 a.m. to 4 p.m., according to county documents. 

In addition to the Blackstone apartment complex, apartments owned by S2 Capital, a Dallas-based real estate firm, are also up for auction.

S2 Capital owns about 40 apartment properties in Dallas-Fort Worth. Several of the firm’s loans tied to D-FW apartments were transferred to special servicing.

S2 properties The Sophia + Loren Apartments in Dallas and The Republic Apartments in Garland were among the properties set to be auctioned on Tuesday, according to county records.

The foreclosure auctions are part of a series of financial difficulties for S2 Capital. According to reporting from The Real Deal, limited partners and preferred equity investors will receive no return of capital from the company’s $400 million value-add fund.

Dallas-Fort Worth’s multifamily market has seen rents decrease following a national surge in supply. The median asking rent in D-FW was $1,462 per month in May, a 2.9% decline year-over-year, according to a Realtor.com study.

Across the United States, May was the 34th consecutive month of year-over-year rent declines. A surge in multifamily construction over the past few years is likely to suppress spikes in median rent, according to the Realtor.com update.