(Read more on the debt and equity markets.)
PLANO, TX-With construction under way, Lexington Luxury Builders has struck a deal with a New York City-based equity partner for the 98-unit Lexington Park at Rice Field and its future projects too. The buy-in is starting with a $26-million transit-oriented townhouse development in the city's historic Downtown.
The Dallas-based developer, which is the architect and general contractor too, got the project moving with construction financing from Texas Capital Bank, getting a revolving vehicle with a take-down component as units sell, according to Stuart Wernick, president of Dallas-based Quantum First Capital. With funding in place, Wernick focused on match-making the right long-term equity partner to Lexington Luxury Builders, led by Scott Schaefer.
"Scott is being sought after by many municipalities to build his product close to rail stations. He knows how to interact with municipalities and transit authorities," Wernick tells GlobeSt.com. "The issue was getting an equity investor to understand townhome single-family development."
Schaefer won the city's nod in late 2005 as its developer for the 6.3-acre tract along Avenue G between 16th and 18th streets, the site of Plano's first high school football stadium and two blocks from DART's light-rail station. Schaefer's company dug into construction as the equity deal was rounding the final stretch, Wernick says. The first units will deliver by midyear.
Lexington Park at Rice Field is two- and three-bedroom units will have a central park and additional common-area green spaces. The units, ranging from 1,600 sf to 2,400 sf, will cost $270,000 to $350,000. Wernick points out townhouse buyers are eligible for special funding because the project is so close to the rail station. In addition, 14 two-story Victorian-style brownstones are eligible for a property tax discount as part of the municipal agreement because they are situated in the Plano Heritage District.
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