Hebron 121 Station in Lewisville, one of Dallas-Fort Worth’s largest privately owned luxury multifamily developments, has been sold, seller Huffines Communities announced last month.
EastSky, a multifamily investor with properties primarily on the East Coast, purchased the 90-acre “resort-style” complex from brothers Donald and Phillip Huffines, co-owners of Huffines Communities, for an undisclosed amount. The development includes 1,429 units and more than 2,000 residents, and is near Interstate 35E at State Highway 121, as well as Denton County Transit Authority’s Hebron Station on the A-train line.
The Huffines, Lewisville natives, began the massive project when they purchased the land in 2007, building the development out over 10-plus years and five phases.
The first phase of 250 units opened in 2011, but the property now includes both apartments and townhomes with upscale amenities including four pools, sand beaches, fountains, entertainment lounges, an on-site restaurant and convenience store and a swim-up bar.
The last phase finished about two years ago and, with some of the leasing challenges brought on by the COVID-19 pandemic behind them, the Huffines decided to put it on the market.
“We just decided it was time,” Phillip Huffines said.
The brothers said Hebron 121 Station offers a unique culture, with space for gatherings, staff-organized events and nearby city hike-and-bike trails and green space.
“One thing we focus on with Hebron is the social fabric — making certain our residents are engaged in meeting other residents and coming to events,” Phillip said. “Most apartment complexes aren’t large enough to support that kind of expense.”
That’s part of what attracted EastSky. Principals Chaim Kiffel and Yossi Cohn first toured the property in January 2020 and again late last year when Huffines Communities and EastSky were ready to begin negotiating a deal, which was completed in April with the help of commercial real estate services firm CBRE.
EastSky, which has been in business for 11 years, has owned properties in the Midwest and Chicago area outside their holdings in the East, but Hebron is its first acquisition in Texas, and its largest so far.
“We have been looking at Texas for at least a couple of years [because] we’re very interested in building a portfolio in the southern states, Texas being probably our primary target,” Kiffel said. “It took us a long time to get a deal that worked for us.”
EastSky is not the only investment group with its eye on the region. CBRE’s annual “Investors Intentions Survey” ranked Dallas second among preferred U.S. markets in 2021, with Austin taking the top spot. Seventy percent of investors surveyed by CBRE said they plan to acquire more property this year.
The Huffines have their eyes on future projects — including Lewisville townhome community Heritage Trails which is about 50% complete, and Heritage Tower, a multifamily development going up next door — but Hebron will remain close to their hearts.
“It was a difficult decision to sell, but with the help of CBRE, we were able to select a buyer who shares our vision and passion for the community,” Phillip said.