Apartment complex now houses 30 short-term rentals in downtown Arlington
The center of downtown Arlington is home to the majority of short-term rental permits approved in the first few months of 2020, in a move some say will create more housing options downtown.
On the corner of Center and Abram streets, 101 Center is home to local businesses including Kintaro Ramen and Inclusion Coffee. The complex was built in 2017 as a way to bring consumers closer to downtown amenities, including the recently rebuilt George W. Hawkes Library and Levitt Pavilion. As of February, it’s also the site for 30 short-term rentals leased by Kasa Living, a national company that says it provides its customers a “home on the road.”
Roman Pedan, the company’s CEO and founder, said the company sought out 101 Center’s units that were in low demand to fill as UT Arlington students come and go and families relocate. He said the rental units can also serve as space for families and friends of the UT Arlington students staying at the complex.
“For this number of units, there was likely to be a lot of demand from within the building,” Pedan said. “Students often have families visiting and other residents often have friends visiting. There was a need for this number of units to complement the existing longer-term use.”
Kasa received the majority of the 54 permits granted in the second quarter of the fiscal year, according to city documents.. Kasa also accounts for the majority of the 37 short-term rental permits active in the 76010 ZIP code.
An ordinance passed by the Arlington City Council allows places within a section of north Arlington as a short-term rental zone, and sets guidelines for areas outside the zone’s boundaries of East Lamar Boulevard, Center Street, East Abram Street and State Highway 360 Frontage Road.
Richard Gertsen, the city’s assistant director of planning and development services, said 101 Center fits into the boundary; however, the complex’s original plans did not specifically grant permission for short-term rentals, complicating the process.
“To make a long story short, that agreement did not specifically call out short-term rentals as a permitted use,” he said, even though the agreement permitted multi-family residencies.
After re-evaluating the agreement and after discussions with the property owners and Kasa Living, Gertsen said, the city approved the permits.
Gertsen described Kasa’s operations as a “very unique niche in the short-term rental market.”
“It is a part of their business models to sublease units within a multi-family project,” he said. “Then, they provide upscale furniture and furnishing to those units and make a very nice accommodation.”
Built on the original site of the George W. Hawkes Library, 101 Center was part of a partnership between the city and a private developer to transform the area into a pedestrian-friendly urban space. The apartments’ construction coincided with that of the new library facility at 100 Center St.
Pedan said his company sought rental spaces in the apartment complex for its proximity to UTA, Six Flags Over Texas, AT&T Stadium and Globe Life Field. However, he said people looking to disturb permanent residents should look elsewhere for their vacation. Pedan said he wanted to make clear to officials that the rentals would not adversely impact residents or nearby shops.
“If you’re coming into town for a party, we recommend you not stay with us because we have all these preventative rules in place,” he said, including smoke detectors and noise sensors.
Pedan said Kasa operates about 150 short-term rental units throughout the Dallas-Fort Worth area. The units at 101 Center, he said, have operated at 80% occupancy rates so far in July, a 10% rise since June. He attributed the rise to people wanting to travel or try a new location before signing a lease.
“(People) want to make sure that, amid, uncertainty, that they have a bit more flexibility to make an informed decision,” he said.
Maggie Campbell, president of Downtown Arlington Management Corporation, cheered that flexibility as another way for residents and visitors to experience downtown living.
“Arlington has always been an affordable place for families to have vacations,” she said. “We’re a strong regional draw for visitors.”
Campbell said the complex is also part of an effort to make Abram Street a pedestrian-friendly corridor dotted with shops, restaurants and other businesses.
101 Center, Campbell said, “is just one piece” of the city’s push for modernity.
“It is very much a layering,” she said. “The housing and having the pedestrian kind of environment is definitely what we’re going to keep building on.”
This story was originally published July 23, 2020 at 6:00 AM with the headline "Apartment complex now houses 30 short-term rentals in downtown Arlington."
