DALLAS-With one apartment community already under development in the Metroplex, Alliance Residential has plans to break ground on two more multifamily projects in North Texas in the coming weeks. Together, the two class A projects total 647 units and have a price tag of roughly $75 million.
Alliance Residential’s new projects are: Broadstone Market Center, 303-unit urban development in the Design District, and a yet-to-be named, 344-unit community in the 1,300-acre Centreport master-planned development in Fort Worth. The Centreport project is located across the street from Broadstone Centreport, a 452-unit apartment community that Alliance delivered in 2008.
Last month, the Phoenix-based firm broke ground on Broadstone Valley Parkway, a 363-unit apartment project in the Dallas suburb of Lewisville. That project had a reported construction price of roughly $35 million.
“We like what we’re seeing in Dallas,” says Nick Chapman, partner/managing director of development for Alliance Residential. “What we’ve seen operationally over the last 12 months is very encouraging, and we want to get out in front of the cycle.”
Chapman tells GlobeSt.com that Alliance Residential is so bullish on North Texas’ apartment markets that it is in the process of closing on three more multifamily sites across the Metroplex. The firm has tentative plans to begin those projects in 2012, with one breaking ground during the first quarter and the other two slated for construction during the second quarter.
Alliance Residential acquired the Broadstone Market Center site from Crow Holdings prior to the recession and credit crisis. “We bought it because we deemed to be a good investment, but we didn’t know when we would put it in production,” Chapman says.
Strong demand in the Design District, however, compelled Alliance Residential to advance its plans. “There were three projects that were built in Design District in 2008, and those projects have proven the market,” Chapman contends. “I think it could probably absorb another 500 to 1,000 residential units.”
Alliance Residential will break ground on the four-story, stick-frame project in August, Chapman says. Designed by JHP Architecture/Urban Design, Broadstone Market Center will feature a mix of studio, one and two-bedroom units with an average size of 800 square feet. Interiors will offer high-end condo finishes, and rents are budgeted at $1.55 per square foot.
Ground breaking for the Centreport project is imminent, Chapman says. Alliance Residential acquired the 16.25-acre site from Dallas-based KDC.
As part of Alliance Residential’s first project in Centreport, the developer nailed down first right of refusal options for any future multifamily projects in the park. “We just had such an encouraging experience with the first one – we were able to lease up 452 units in 14 months,” Chapman points out. “Demand in this location has proven to be phenomenal. It’s peak leasing season, and we’re experiencing about 75 prospective residents per week – that’s relatively high. We believe the demand is there to justify a second phase, so we didn’t hesitate to buy the land.”
Designed by Womack + Hampton Architects LLC, the multifamily project will offer one, two and three-bedroom units. Although it will complement the existing Broadstone property in Centreport, it will feature up-to-date finishes and amenities, which are expected to capture a price point that is 10% higher than the existing property, Chapman says.
Both projects are slated for completion by year-end 2012.
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