Design District News

New Airbnb-style rental concept leases vintage building in Dallas' Cedars

New Airbnb-style rental concept leases vintage building in Cedars

Sonder Cedars
It's halfway between an Airbnb and a hotel. Photo courtesy of Bradford

A new lodgings option is expanding its footprint in Dallas: Sonder USA, a San Francisco company that offers short-term rentals — kind of halfway between an Airbnb and a hotel — has signed a lease for a full floor in a cool vintage building in Dallas' Cedars District.

According to a release, Sonder has signed a long-term lease for the second floor of Cedars Corner, at 1108 S. Akard St. The units will be available in February.

Sonder designs and outfits each space — referred to as a "Sonder" — and provides 24/7 staff support to guests.

Each Sonder is individually designed and outfitted with the amenities of home and comes with a 24/7 support staff for renters. The apartments range from studios to six bedrooms.

"Sonder is very selective about its locations and finish-out," says Josh Meraz, a broker associate at Bradford Commercial Real Estate Services who's working with Sonder to find sites in Dallas. "Property owners are now chasing them."

The company launched in 2012 and now have a portfolio of more than 9,500 short-term rental units in 30 cities, which are also the most popular travel and business locations globally.

Unlike Airbnb rentals, Sonder holds the lease on each property. This hybrid experience is meant to be similar to staying in a hotel, but in a private home in a neighborhood.

This new deal adds 14 more units to Sonder's rapidly expanding portfolio of short-term rentals in Dallas. The most recent count shows 52 Sonder units available in Dallas.

Prior to the Design District signing, Sonder secured leasing and management rights to a 26-story, 270-unit apartment building currently under construction in the Dallas Arts District. The project, 1899 McKinney, is being built in partnership with Austin-based Rastegar Property. It is slated to open before 2023. It is Sonder's largest single site in the portfolio to date.

Meraz is working with Michael A. Merryman, Sonder's head of real estate in Dallas, to find more sites, focusing on Uptown, downtown, and Knox-Henderson for office or multifamily units that can be converted into short-term residential rental spaces.