DALLAS-A pair of Dallas developers is under way on a $27.2-million multifamily development that will add 280 units near 264 acres earmarked by the University of North Texas for its next campus.
The Rose Court at Thorntree will start delivering in fourth quarter 2004 on 21 acres of a 52.6-acre tract bought in early November for $1.4 million from Beckley Capital LP. Provident Realty Advisors Inc., led by Leon J. Backes, is co-developing the 14-building, gated community along Old Hickory Trail with Sphinx Development, with Jay O. Oji as its president.
With all units dedicated to households earning 60% or less of the $66,500 annual median income, Rose Court is rising in a submarket with a 92.7% occupancy in the existing multifamily stock and few available three-bedroom apartments. Today's demand and that of the future are driving three other developments, two of which will deliver this month and the third in the summer.
Rose Court, timed to deliver with UNT's construction start for a Dallas campus, will bring two- and three-bedroom units ranging from 960 sf to 1,120 sf and rents with a projected start of $748 per month. “Apartment dwellers continue to face a serious affordability gap in Dallas,” James Spound, CharterMac executive vice president, says in a press release. “Rose Court at Thorntree will help close the gap by providing quality, fully modern living space at more reasonable rent levels.”
Rose Court's construction financing came from the New York City-based CharterMac and subsidiary Related Capital Co. CharterMac kicked in $16.4 million, of which $15 million was derived from tax-exempt revenue bonds floated at a 6.75% interest rate with a 40-year term and amortization. The $1.4-million balance was provided via a taxable tail, with a 40-year amortization, 12-year term and 8.75% interest rate, according to the Texas Department of Housing and Community Affairs. Related Capital put up $9.1 million in equity in exchange for $1.1 million in state-awarded tax credits for 10 years with a projected net yield of $9.3 million, records show.
Rose Court will include a 5,000-sf community center, swimming pool, all-sports court, two playgrounds, picnic area, business center and exercise facility in a neighborhood with retail and vacant land to the north and office and industrial product to the east. Pacific West of Dallas will lease and manage the development; New Horizons of Dallas will oversee support services for tenants.
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