AUSTIN, Texas, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Rastegar Property, a vertically-integrated real estate investment firm focused on value-add and development in all asset classes across the United States, today announced a long-term lease agreement with next-gen hospitality company Sonder for a proposed 270-unit Dallas high-rise. The agreement represents the largest deal to-date for Sonder, a leader among hospitality brands targeting travelers and renters who seek flexible, high-quality accommodations.
The proposed project is located at 1899 McKinney Avenue in Dallas, Texas, and upon Rastegar’s completion of the development, Sonder will fully operate the units, offering guests beautifully designed, tech-enabled boutique living spaces serviced by Sonder’s local hospitality team. The flagship property for both Rastegar and Sonder establishes a new, modern option for those looking to stay in the Dallas area for a finite period of time—whether it be for two days, two months or two years.
“The hospitality industry has been ripe for disruption for a long time, and I believe Sonder is providing the industry with the refresh it needs,” said Ari Rastegar, CEO of Rastegar Property. “As a tech-driven firm, Rastegar instantly connected with Sonder over a mutual belief in deploying a tech-centric approach to business. The shared vision for this partnership is to institutionalize rentals by creating a high standard that fills the gap between five-star hotels and renting a home, especially with respect to Sonder’s service standards. We anticipate this deal being the biggest of its kind, continuing to disrupt the hospitality space in a way that ultimately benefits travelers and tenants.”
All of the units will be purposefully designed and outfitted as entire living spaces with the comforts of a home, including luxury fixtures and appliances, fully equipped kitchens, in-unit laundry and NoiseAware technology. Guests will also have access to a wide array of property amenities including storage lockers on every floor, check-in services, subgrade parking, defined rideshare pickup/drop-off zones, valet parking, a pool and rooftop deck, and common areas on each floor.
“We strategically chose Dallas for this project due to its status as a thriving business community and burgeoning tourism destination. The opportunity to partner with Rastegar to bring a project of this scale to the city is incredibly exciting for Sonder,” said Michael A. Merryman, Head of Dallas Real Estate at Sonder. “Master leasing the entire property rather than individual units or floors represents the vision for the future of Sonder’s business model and the future of the hospitality industry as we continue democratizing travel by providing luxury accommodations at a great value to guests. The operational flexibility and real estate acumen shared by Sonder and Rastegar make this partnership a natural fit and will pave the way for partnerships between Sonder and prominent, innovative developers on a wide spectrum of future projects.”
This project possesses significant value for all parties involved, as Rastegar will be able to accelerate the construction and financing processes by leasing solely to Sonder, and Sonder will have an extensive presence in one of America’s 10 largest cities. Both Rastegar and Sonder expect to significantly impact the Dallas economy and job market by hiring and sourcing vendors and contractors locally, and by attracting an influx of new visitors.
“Sonder and Rastegar both take pride in creating unparalleled experiences for their guests and residents, while ensuring each project positively impacts the local community by building relationships and giving back,” said Merryman.
“This project is very personal to me as I was raised in Dallas and I’ve always had a dream of being part of the Dallas Skyline in a way that enhances it, and this partnership with Sonder achieves that vision,” said Rastegar. “Our shared objective behind this project is to bring something new to the Dallas real estate scene that will serve the community well and make the most of this valuable lot.”
The 1899 McKinney property is expected to be fully developed and rentable by early 2023.
About Sonder
Sonder is a next-gen hospitality company that recently reached over a $1 billion valuation from its Series D funding round. Headquartered in San Francisco, Sonder builds beautiful spaces for travel and life, powered by technology, and was recently named the "Most Innovative Travel Company of 2019" by Fast Company. Today, Sonder manages $4 billion worth of real estate and continues to grow rapidly — operating in nearly thirty cities around the world and welcoming hundreds of thousands of guests annually. Whether a guest stays for two days, two months or two years, Sonder ensures a unique yet consistent experience.
About Rastegar Property
Rastegar Property is an Austin, Texas based, vertically-integrated real estate investment firm focused on value-add and development in all asset classes across the United States. Rastegar and its affiliates have co-invested in over 4.9 million square feet of real estate with projects in 12 states and 34 cities. Rastegar specializes in acquiring complex or undervalued real estate assets in which there are opportunities to create value through repositioning, redevelopment, or leveraging its exceptional property and asset management platform to uncover and capitalize on underlying operational inefficiencies. Rastegar’s unconventional perspective comes from the combined power of disciplined focus and ambition, years of specialized experience and expertise, and outside-the-box thinking.
Disclosure Statement
Rastegar assumes no liability or responsibility for any errors or omissions in the content contained in this release.
Media contact:
Kyle Evans
FischTank Marketing and PR
kyle@fischtankpr.com
646-699-1414