(Read more on the multifamily market.)
MCKINNEY, TX-Phillips Development & Realty LLC (PDR) closed on the $2.9 million acquisition of 13.8 acres in the McKinney Ranch master-planned community. The Tampa-based company will use the site for development of Hudson at McKinney Ranch, a 330-unit, urban-format class A apartment complex that will be its third major project in Texas.
According to Donald Phillips, managing director of PDR, the city of McKinney has experienced strong population and employment growth in recent years, with both more than doubling since 1990. He says it is poised for continued growth. "Our sights were drawn to this bright spot, which is becoming the nexus of growth in North Texas," he tells GlobeSt.com.
Listed on the National Register of Historic Places, the town of McKinney was founded in 1841. Because the community has an established character, Phillips says the developer has taken pains to design a project that fits within the existing environment. "It is important to balance both development and preservation of the town's character and quality of life as it matures," he comments.
The purchase was facilitated by lender Compass Bank of Birmingham, AL which PDR has partnered with on several previous projects, including two others in Texas. "PDR has been a valued customer of ours for three years," says bank senior vice president John Brodie. "Compass Bank is committed to supporting our developer clients in the Southwest real estate market, and we are excited about the tremendous potential the McKinney Ranch community offers in its position for steady growth."
PDR plans to break ground on Hudson at McKinney Ranch in December. When complete in 2008, it will have 153 one-bedroom units, 165 two-bedroom units and 15 three-bedroom units. Sizes will range from 838 sf to 1,400 sf. McKinney Ranch is a 530-acre master-planned community at state highways 75 and 21 that will have single-family and multifamily residential, retail, entertainment, commercial and office components. A $40 million, 115-acre sports complex and two other master-planned communities, the 6,700-acre Stonebridge Ranch and 1,900-acre Craig Ranch, adjoin the development.
Two years ago PDR paid $50 million for 480 acres at McKinney Ranch, which it subsequently sold to a variety of other developers. It bought the land from Grupo Bimbo of Mexico City. The acreage constitutes the bulk of the McKinney Ranch master-planned development.
Earlier this month, PDR closed on a $142 million loan through Chicago's Corus Bank, enabling the developer to proceed with the $202 million Mosaic of Houston project, a dual-towered, mixed-use tower near Houston's 445-acre Hermann Park that will be the largest residential high-rise in the city.
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