LEWISVILLE, TX-Alliance Communities has broken ground on Broadstone Valley Parkway, a 363-unit, class A apartment project here. The firm declined to disclose the cost to construct the property, but a local expert estimates the new rental community has a price tag of at least $35 million.
Alliance Communities’ CFO V. Jay Hiemenz says strong market fundamentals and a decline in land and construction costs should allow the firm to deliver the property at a projected 8%-plus yield on cost – an attractive spread to current market acquisition cap rates.
Situated on 16.4 acres at the corner of West Round Grove Road and Valley Parkway in this north Dallas suburb, Broadstone Valley Parkway is just a couple of miles away from another Alliance Communities project, Broadstone Vista Ridge. That community, which was completed in 2006, was the latest to come to market, according to Nick Wilhelmson, development associate for the central region for Alliance Communities.
“It’s been five years since something new has been delivered there,” Wilhelmson says, telling GlobeSt.com that Alliance Communities evaluated competitive properties and found that they were at least 95% occupied and garnered effective rents of $1.05 to $1.15 per square foot or more. “The studies that we’ve done indicate that demand is there.”
Designed by Dallas-based Womack + Hampton Architects LLC, Broadstone Valley Parkway will feature three-story wood-frame construction with attached garages. It will offer a mix of one, two and three-bedroom units with an average size of 948 square feet.
Interior amenities include granite counters with under-mounted sinks in kitchens and baths, 42-inch cabinets, 12-inch ceramic tile flooring and surrounds in baths, accent walls, and upgraded appliance, lighting and plumbing packages. Community amenities include: a resort-style pool, barbecue area, clubhouse, fitness center and business center.
Broadstone Valley Parkway is slated for completion in December 2012. It will increase the firm’s existing Metroplex portfolio to six properties and more than 2,000 units.
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