With three luxury rental communities totaling 1,053 units under development across Dallas-Fort Worth, Toll Brothers Apartment Living is bullish on North Texas.
And why not be? It’s one of the busiest multifamily markets in the country, with one of thenation’s best job markets driving it.
Toll Brothers Apartment Living, the rental division of Pennsylvania-based national homebuilder Toll Brothers Inc. (NYSE: TOL), is partnering with Chicago-based Equity
Residential (NYSE: EQR) on apartment communities called Lyle in Dallas, The Settler in Fort Worth, and Remy in Frisco. The projects are the first three joint ventures under a new strategic relationship for the two companies.
Remy is a five-story, 357-unit apartment community in Frisco Town Center being financed through a construction loan from Santander Bank. Remy will consist of 357 apartment units and a 545-space parking garage.
Equity Residential will invest 75% of the equity for each project. Toll Brothers Apartment Living will invest 25%. Each project is expected to be financed with roughly 60% leverage.
The parties have targeted an initial minimum co-investment of $750 million in combined equity, or nearly $1.9 billion capacity, assuming 60% leverage. Equity Residential will have the option to acquire each property upon stabilization.
In the interview that follows, Toll Brother Apartment Living President Charles Elliott and Tommy Rhodus, regional director of Development & Acquisitions for Texas, focus on the North Texas apartment market.