(Read more on the multifamily market.)
[IMGCAP(1)]ADDISON, TX-United Dominion Realty Trust is poised to break ground in early 2008 on the first phase of a $453-million redevelopment of a 100-acre tract that it amassed in the past year through the acquisition of nine multifamily properties. The replacement product will be 5,949 residential units, roughly 500,000 sf of office space and an equal amount of retail space.
The as-yet unnamed project will be UDR's largest undertaking in the metroplex. The plan is still being fine-tuned although the REIT has penciled a first quarter 2009 delivery for the 2,712-unit first phase. To set up the play, the REIT acquired 2,499 units along Brookhaven Club Drive and Spring Valley Road near Brookhaven College.
"We've assembled this in pretty quick fashion," says Larry Thede, investor relations director for the Highlands Ranch, CO-based UDR. He tells GlobeSt.com that the master plan is still in flux, but all acquisitions are done and talks are underway with city officials about increasing density, rezoning and other outstanding development issues. "Our intent is to start from scratch," Thede says. "We're likely going to get going early in 2008."
The Addison project is being closely watched by brokers on the street because of its scope. UDR is planning to build a pair of seven-story, mixed-use towers and scores of lower buildings on a site to be bisected by a new road to run perpendicular to Brookhaven Club Drive. [IMGCAP(2)]UDR initially planned four-over-one designs, but a new twist could add a fifth residential floor to the low-rise buildings. The project architect is WDG Architecture Inc. of Dallas.
Thede says UDR is talking to "one or more" institutional investors about partnering on the project. In the REIT's third-quarter supplemental, it reported the first phase represented $352 million of the $453-million plan. The SEC filing also reported that roughly $111.8 million has been spent to date to assemble the site.
Thede says Addison's drawing power for the steep investment is the daytime population of 100,000, with only 16,000 living inside the city line. "It's a good job center, but there isn't much housing," he adds.
Since third quarter 2006, UDR has amassed the 382-unit Green Haven Village Apartments on 21.5 acres at 3900 Brookhaven Club Dr.; 360-unit Addison at Brookhaven on 24 acres at 4010 Brookhaven Club Dr.; 240-unit Greenbrook Apartments on 9.5 acres at 3789 Brookhaven Club Dr.; 104-unit Brookhaven Apartments on four acres at 3767 Brookhaven Club Dr.; 660-unit Clipper Point Apartments on eight acres at 4015 Brookhaven Club Dr.; 181-unit Garden Oaks Apartment Homes on eight acres at 4005 Brookhaven Club Dr.; 220-unit Talisker of Addison on 9.5 acres at 3925 Brookhaven Club Dr.; 168-unit Glenwood Apartments on 6.5 acres at 3800 Spring Valley Rd.; and 184-unit Springhaven Apartments on 9.5 acres at 3820 Spring Valley Rd.
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