The Adaline
The Adaline is a 12-acre mixed-use development located in Southern Dallas, Texas
Onu Ventures acquired the property in July 2022 after conducting extensive research on the site and its submarket. The development plan for The Adaline includes a 2-acre retail pad that will feature a neighborhood market and café, as well as 10 acres dedicated to workforce housing. The target demographic for the workforce housing is renters in the 65-90% Area Median Income (AMI) range.
Several challenges were associated with the site, including a 40-foot change in elevation, a floodplain, and the presence of U.S. Army Corps wetlands. Despite these challenges, Onu Ventures proceeded with the project. They also had to navigate financial challenges, as they embarked on the development during a period of high-interest rates established by the Federal Reserve in 2023.
To address key challenges and optimize the project, Onu Ventures took several strategic steps:
- Tax Abatement: They secured a 10-year tax abatement from the city. A tax abatement allows property owners to reduce or eliminate property taxes for a specified period, which can help improve the financial performance of the development.
- ADA Accessibility Exemption: Onu Ventures obtained an exemption for ADA (Americans with Disabilities Act) accessibility requirements. This exemption likely allowed them to lower the finished floor elevation of the apartments, reducing sitework costs, and streamlining the construction process.
- Efficient Apartment Design: The development’s apartment complex was designed to be highly efficient, achieving an 88% efficiency rating. This might have been achieved by eliminating corridors within the buildings and creating two-story units. Such measures can lead to cost savings and possibly a more attractive offering for prospective renters.
Onu Ventures has a phased plan for The Adaline. Phase 1, which includes the retail pad, is scheduled to be delivered in March 2024, while Phase 2, comprising the apartments, is expected to be completed in 2025. This phased approach allows for the careful development of the site, taking into consideration the challenges and opportunities presented by the property and the local market.
The focus on providing quality retail options and affordable workforce housing in an area with blue-collar employment opportunities is aimed at meeting the specific needs of the community and addressing gaps in the local market. The development is likely to contribute to the economic and social development of the Southern Dallas region.