ASREF II provided $3.0M in preferred equity to ZNE Capital for the recapitalization and renovation of Estrella at Kiest, a 232-unit workforce housing community in Dallas, Texas. The property successfully exited in November 2023.
ASREF provided $3.0M of preferred equity to ZNE Capital for the recapitalization and renovation of the 232-unit, workforce housing multifamily apartment community, Estrella at Kiest, located in Dallas, Texas. This property is located in a moderate-income census tract and is required to maintain that 100% of the units be affordable to individuals at less than 80% AMI. ASREF’s investment in Estrella at Kiest will help preserve the availability of affordable housing for residents in this LMI area while implementing cost savings and increased environmental sustainability.
Estrella at Kiest, currently 80% occupied, is a 13.09-acre land parcel featuring 17 buildings; 232 units across 14 two-story apartment buildings, one laundry building, one maintenance/mechanical building, and one storage shed. The buildings were originally constructed in 1968. The Sponsor’s business plan includes repairing twenty-four (24) fire-damaged units and twenty-five (25) units made inoperable by a freeze-induced water damage, making value-add and curb appeal improvements to the property, and implementing roof-mounted solar panels, ultimately reducing operating costs via energy savings.
Estrella at Kiest exited in November 2023.
| Asset Type | Multi-Family Residential |
| Development Type | Renovation |
| Previous Use | Multi-Family Residential |
| Investment Closing Date | May 15, 2022 |
| Total Development Area | 13.1 acres (202,520 SF) |
| Construction Timeframe | Start: Summer 2022; Finish: October 2023 |
$25.6M
$25.6M
$3.0M
$8.7M
$11.7M
American South Capital Partners collects each project's census tract income level at the time of close as part of CRA reporting guidelines. Source: Federal Financial Institutions Examination Council Geocoder.
ZNE CAPITAL (“ZNE”) is a real estate acquisition and investment group with a strategy to enhance the traditional, multifamily, value-add model by adding onsite renewable energy to provide environmental and social impact. ZNE is the world’s first Zero Net Energy real estate platform.
| Location | 4542 West Kiest Blvd, Dallas, TX, 75236 |
| Area | Dallas-Fort Worth Metropolitan Statistical Area |
| LMI Community Status | Moderate |
| Unemployment Rate | 12% |
| Poverty Rate | 18% |
| % Minority | 82% (44% African Americans) |
Estrella at Kiest is located in the Kenwood neighborhood of Dallas in a moderate-income census tract with a predominately minority population (82%) and an 18% poverty rate. The tract is also adjacent to four moderate-income census tracts and three low-income census tracts.
The majority of the rentable units in the area are low- to moderate-income renters. The acquisition will assist in preserving the low-to-moderate income housing inventory in this area.
SDS reports on partners ZNE Capital and LeavenWealth using the total $27.8M project investment to make significant structural and electrical repairs throughout the complex. Units will be rented at rates affordable at 80% AMI bringing critically needed workforce housing to the region.
ASREF II’s $3.0 million preferred equity investment in Estrella at Kiest preserved the availability of quality affordable housing in an LMI area. The redevelopment improved the quality of the asset and increase energy efficiency while reducing operating costs.
