PLANO, TX-Zale|Corson Group is moving forward with plans to develop a 240-unit apartment complex here.
Dubbed The Encore, the class A project will be located at the southwest corner of Ohio Drive and McDermott Road next to Tribeca Apartments, a 398-unit complex the firm developed and sold in late 2010 to Chicago-based BES Acquisitions, a subsidiary of Sherman Residential. Dallas-based Zale|Corson Group expects to break ground on The Encore on May 1, according to Principal Charlie Corson.
Although Corson declined to disclose the price tag for The Encore’s development, local experts estimate that the all-in costs will like exceed $30 million. Corson tells GlobeSt.com that his firm has nailed down construction financing from Wells Fargo Bank after visiting with a dozen banks. Robert Williams of Centric Capital coordinated the construction financing for Zale|Corson Group.
“The fact that we were able to obtain a loan proves that the capital markets have thawed,” Corson contends, adding that the process for The Encore was very different than the one for Tribeca. “Banks today are very particular in their underwriting, and they require a lot more equity today than they used to.”
Corson says his firm always planned to develop a sister project to Tribeca, but wanted to wait until the timing was right, adding that Tribeca was 97% occupied when the firm sold it. “Given the success of Tribeca and the lack of construction in the market, we believe now is the time to move forward,” he explains. “We think demand for The Encore will be extremely strong.”
Designed by JHP Architecture/Urban Design, The Encore will be “architecturally compatible” with Tribeca and will feature many of the same amenities. Although The Encore’s unit interiors will provide a similar level of luxury build out, they will be slightly smaller than those at Tribeca.
Corson says The Encore will be completed in July 2011.
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