DALLAS-A joint venture group including Prescott Realty Group, Northwestern Mutual and AREA Property Partners has broken ground on a mixed-use development near Southern Methodist University.
The project, located on the old Shamburger Lumberyard site, consists of 417 apartments and 9,100 square feet of retail and has a price tag of roughly $45 million, according to Taylor Stone, managing director of Prescott Realty Group’s multifamily division. It is within walking distance of the DART Mockingbird rail station and a quarter mile from the Southern Methodist University campus.
The project is the third and final phase of the revitalization of the University Crossing neighborhood east of Central Expressway. The first phase was construction of a garage located on the 6060 North Central Expressway site adjacent to the DART line. Phase II was construction of the Shelby, which opened in October 2009 and includes 55 residential lofts and 3,500 square feet of retail located on SMU Boulevard. The three phases have a combined, projected taxable value of close to $60 million.
Stone tells GlobeSt.com that Prescott partnered with New York City-based AREA Property Partners on all three phases, but brought in Northwestern Mutual as both an equity and debt partner for the third phase. The life insurance company provided a $33 million construction loan for the third phase.
Designed by local architecture firm Humphreys & Partners, the third phase consists of two levels of podium parking with street-facing retail plus three four-story buildings on top of the podium. It will offer a mix of one, two and three-bedroom units with an average unit size of 800 square feet.
Monthly rents will range from $895 to $2,200, or about $1.68 per square foot, according to Stone. “It is being marketed toward young adults including both young professionals and students at SMU,” he notes, adding that the mixed-use project, which is scheduled for completion in August 2012, is designed to achieve LEED Silver certification.
The new development is part of the City of Dallas’s first tax increment financing (TIF) district. The TIF district encompasses eight DART stations. Specifically, the TIF includes 559 acres in addition to public rights-of-way stretching to the south from the Lovers Lane/Mockingbird area along the Dallas Area Rapid Transit (DART) rail line to the Lancaster/VA Medical Center region.
The JV's project will generate revenue for the TIF district, but it is being constructed entirely with private funds, Stone explains. The revenue will be used to spur development in South Dallas.
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