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On March 10th, 2023, SPI Advisory, LLC, the Dallas & Austin-based multifamily private equity firm, announced the sale of Canopy at South Lakes, a 240-unit, Class A- apartment complex built in 2002 and located at 500 South I-35E in the north Dallas/Fort Worth suburb of Denton, TX.
Over the past two years of ownership, SPI implemented a number of capital improvements to the property that included premium unit upgrades, an automated package locker system, an outdoor pool lounge renovation, a complete office remodel, and more.
“Canopy at South Lakes is situated in a great pocket of Denton,” said Michael Becker, Principal at SPI Advisory in a statement. “During our ownership period, there was tremendous demand from the local tenant base. I wish the new ownership group success as they continue to improve the property over the coming years.”
Positioned just 40 minutes north of DFW, Canopy at South Lakes provides residents close proximity to the best major employment, entertainment, education, and retail centers the city has to offer. The complex includes one-, two-, and three-bedroom apartments with plank flooring, stainless steel appliances, walk-in closets, balconies, full-sized washers and dryers, and brand-new plumbing fixtures. Residents also enjoy a complimentary coffee and tea bar, fenced-in dog park, volleyball court, covered parking, clubhouse, and valet trash service.
“The decision to sell was a tough one because the property has always performed so well and the improvements our team made seemed to resonate with the tenant community at Canopy,” said Sean Mabarak, Principal at SPI Advisory. “However, the sale generated a return that exceeded our five-year total project return estimate in just two years, which is a phenomenal result for our investors. In today’s uncertain market where paper returns [your estimated ROI relative to current market values] is anyone’s guess, it’s a privilege to be able to deliver actual returns that exceeded expectations.”
The three-story, garden-style apartment community was initially acquired in February 2021 as part of a two-property portfolio, in which its partner property, The Ventura was disposed of on December 29th, 2022.
For more information concerning the sale of Canopy at South Lakes, visit http://www.SPIAdvisory.com/