FOR IMMEDIATE RELEASE
3,000 multifamily units planned over next 10 years; Industry veteran Mark McHenry to lead effort
FORT WORTH, Texas (January 31, 2012) – Hillwood Properties, developer of AllianceTexas, announced today a long-term business strategy for the expansion of Hillwood Multifamily, a subsidiary that focuses on multifamily investment and development opportunities. Hillwood Multifamily will initially concentrate on delivering more than 3,000 units of multifamily product over the next 10 years within the company’s 17,000-acre AllianceTexas master-planned development. The additional units will meet the increasing housing demand driven by a sizeable and growing employment and population base at AllianceTexas and throughout the surrounding region.
For the effort, Hillwood has hired multifamily industry veteran Mark McHenry to lead the company’s multifamily division. Prior to joining Hillwood, McHenry led the southwest regional multifamily development operations for Atlanta-based Lane Company, as well as leading regional multifamily development operations for public and private firms including JPI and United Dominion Realty Trust.
Though the division’s 10-year business plan for the AllianceTexas region involves the construction of over 3,000 multifamily units, the company’s current land holdings at AllianceTexas include zoning for more than 5,000 multifamily units. In total, Hillwood controls over 50 percent of the multifamily entitlements in the competitive submarket. The pace of new development activity, as well as specific product types and amenities, will be market-driven and designed to appeal to a wide audience. Based on the rate of growth in the region and limited availability of competitive sites, the company anticipates the potential to deliver a new phase of multifamily development every 12-to-18 months.
The majority of the planned multifamily units will be concentrated in the 900-acre Alliance Town Center mixed-use development, which stretches along Interstate 35W from North Tarrant Parkway to Golden Triangle Boulevard. Best known for the retail center, a joint venture with Trademark Property Company, Alliance Town Center is home to some of the country’s leading brands, including JCPenney, Kroger Marketplace, Rooms to Go, BJ’s Brewhouse, Mi Cocina, Best Buy, Cinemark, Sam Moon and Belk, among others. In addition to more than 850,000 square feet of existing retail space, Alliance Town Center will integrate office, medical and commercial uses, including the now open ER at Alliance and Texas Health Resources Harris Methodist Hospital Alliance, scheduled to open in fall 2012. Incorporating the additional 3,000 multifamily units with this strong commercial base will create a true, mixed-use experience for the growing employee and resident population.
Hillwood Properties’ residential experience in the market includes Monterra Village, the first multifamily project that was completed within AllianceTexas in 2008. The luxury townhome and apartment home community was the first 100 percent smoke free property in the Dallas / Fort Worth Metroplex. The high performing project has stabilized, maintaining 95 percent occupancy for the last year. In addition, nearly 8,000 single family homes have been delivered in the Alliance/north Fort Worth market through the company’s Hillwood Communities division.
“We are committed to the multifamily product sector as a key component of our business strategy going forward,” said Ross Perot, Jr., chairman of Hillwood Development Company. “The multifamily strategy complements our other core business lines at AllianceTexas. In addition, the ability to deliver quality multifamily housing as a residential option serves to enhance the appeal of the region for corporate employers, and retail and service companies evaluating the location or expansion of their business operations in the AllianceTexas region.”
“The AllianceTexas region has a significant and growing employment base, a rapidly increasing population and a wide range of existing and expanding services in and around Alliance Town Center,” said Mike Berry, president of Hillwood Properties. “This is why Hillwood has chosen AllianceTexas to expand its long-term multifamily investment strategy and create a diverse, branded portfolio of multifamily product in a unique, master-planned environment serving the AllianceTexas region.”
Longer term, Hillwood may expand its multifamily initiatives in other markets.
“Hillwood has a concentration of multifamily entitlements in the heart of a premier master-planned development that will continue to grow as the economy recovers,” McHenry said. “The development of quality multifamily housing at an appropriate pace of delivery is a natural extension of the AllianceTexas business strategy and enables us to develop a portfolio of over 3,000 units in the next 10-year cycle. We hope to replicate this strategy, expanding our portfolio with high-quality, Hillwood-branded multifamily developments in select target markets.”
Hillwood also has formalized its multifamily management platform and added key staff to its multifamily management team at AllianceTexas. Stephanie Isham has joined the team as property manager for Monterra Village. Isham previously served in senior property manager roles with Lincoln Property Company and Riverstone Residential Group, where she has been responsible for the lease up of multiple Class A apartment communities. Additionally, Christine Adeeb and Amy Perez, who have served as leasing consultants at Monterra Village for three years, have been hired as full-time Hillwood associates. McHenry and the team will lead the expansion of the Hillwood Multifamily management company as the portfolio grows.
“The internal management team is an integral component of our long-term multifamily investment strategy,” Berry said. “We believe keeping management in-house gives us the best opportunity to control the operating expenses at our properties, while maintaining a consistent level of product quality and resident services that will lead to higher resident retention rates.”
ABOUT ALLIANCETEXAS AllianceTexas (http://www.alliancetexas.com/) is a 17,000-acre, master-planned community anchored by the world’s first industrial airport. It includes the Alliance Global Logistics Hub, Circle T Ranch, Heritage, Alliance Town Center, Saratoga and Monterra Village projects. AllianceTexas is now home to 265 companies, which have built nearly 32 million square feet and created more than 30,000 jobs. The community also now includes more than 7,600 single-family homes and 288 luxury apartment homes. Since its inception, AllianceTexas has generated a $40.65 billion economic impact for the North Texas region.
ABOUT HILLWOOD Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and as the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center and 2,000-acre AllianceCalifornia developments. For additional information about the company, please visit http://www.hillwood.com/.
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To help meet housing demand driven by a growing population, Hillwood Properties is expanding its multifamily division. The group will initially focus on developing more than 3,000 apartment units within Hillwood’s massive AllianceTexas project in North Fort Worth and surrounding communities.
Mark McHenry has been hired to lead the charge. He previously oversaw Southwest regional operations for Atlanta-based multifamily developer Lane Co. Prior to that he worked for both JPI and United Dominion Realty Trust.
Zoning at AllianceTexas allows for more than 5,000 multifamily units. Hillwood says the majority of the planned apartments will be located within the 900-acre Alliance Town Center, which is situated along Interstate 35-W from North Tarrant Parkway to Golden Triangle Boulevard. The center already is home to 850,000 square feet of retail space, along with a Texas Health Resources hospital that’s slated to open this year.
Hillwood’s first multifamily project at AllianceTexas, Monterra Village, opened in 2008. The smoke-free development is 95 percent occupied. The company also has delivered more than 8,000 single family homes through its Hillwood Communities division.
To help round out McHenry’s team, Hillwood hired Stephanie Isham as property manager for Monterra Village. She previously served in senior property manager roles with Lincoln Property Co. and Riverstone Residential Group. Additionally, Christine Adeeb and Amy Perez, who have served as leasing consultants at Monterra Village, have been hired as full-time Hillwood associates.
As things progress, the company says it also will consider similar ventures in other U.S. markets.
Here are press statements on the multifamily initiative from Hillwood execs:
Ross Perot Jr., chairman of Hillwood Development Co.: “We are committed to the multifamily product sector as a key component of our business strategy going forward. The multifamily strategy complements our other core business lines at AllianceTexas. In addition, the ability to deliver quality multifamily housing as a residential option serves to enhance the appeal of the region for corporate employers, and retail and service companies evaluating the location or expansion of their business operations in the AllianceTexas region.”
Mike Berry, president, Hillwood Properties: “The AllianceTexas region has a significant and growing employment base, a rapidly increasing population and a wide range of existing and expanding services in and around Alliance Town Center. This is why Hillwood has chosen AllianceTexas to expand its long-term multifamily investment strategy and create a diverse, branded portfolio of multifamily product in a unique, master-planned environment serving the AllianceTexas region.”
Mark McHenry: “Hillwood has a concentration of multifamily entitlements in the heart of a premier master-planned development that will continue to grow as the economy recovers. The development of quality multifamily housing at an appropriate pace of delivery is a natural extension of the AllianceTexas business strategy and enables us to develop a portfolio of over 3,000 units in the next 10-year cycle. We hope to replicate this strategy, expanding our portfolio with high-quality, Hillwood-branded multifamily developments in select target markets.”
Developer Hillwood is expanding its operations with plans to build more than 3,000 apartments during the next decade.
The rental units will be constructed in Hillwood's flagship AllianceTexas community in North Fort Worth.
Hillwood said Tuesday that it has hired veteran apartment industry executive Mark McHenry to head up its multifamily development division. McHenry has previously worked with apartment developers Lane Co., JPI and United Dominion Realty Trust.
Hillwood said most of its new apartments will be located in the 900-acre Alliance Town Center project on Interstate 35W
The developer said it wants to open a new apartment development every 12 to 18 months.
Hillwood chairman Ross Perot Jr. said the development of apartments will add to the 17,000-acre AllianceTexas' appeal. The project is already one of the state's largest commercial and residential developments.
"In addition, the ability to deliver quality multifamily housing as a residential option serves to enhance the appeal of the region for corporate employers, and retail and service companies evaluating the location or expansion of their business operations in the AllianceTexas region," Perot said in a statement. “We are committed to the multifamily product sector as a key component of our business strategy going forward."
Hillwood has already built the Monterra Village apartments at AllianceTexas. The 288-unit development opened in 2008 and is 95 percent occupied.
Hillwood has been working on plans for a 262-unit rental home project adjacent to Monterra Village.
Hillwood said it also might expand its apartment development program to other markets in North Texas and elsewhere.
"We hope to replicate this strategy, expanding our portfolio with high-quality, Hillwood-branded multifamily developments in select target markets," McHenry said.
AllianceTexas developer Hillwood Properties announced today its plans to expand its Hillwood Multifamily subsidiary.
Hillwood Multifamily will initially concentrate on delivering more than 3,000 units of multifamily product over the next 10 years within the company’s 17,000-acre AllianceTexas master-planned development.
Leading the effort will be multifamily industry veteran Mark McHenry, who, prior to joining Hillwood, led the southwest regional multifamily development operations for Atlanta-based Lane Company, as well as leading regional multifamily development operations for public and private firms including JPI and United Dominion Realty Trust.
“We are committed to the multifamily product sector as a key component of our business strategy going forward,” said Ross Perot Jr., chairman of Hillwood Development Co. in a news release. “The multifamily strategy complements our other core business lines at AllianceTexas. In addition, the ability to deliver quality multifamily housing as a residential option serves to enhance the appeal of the region for corporate employers, and retail and service companies evaluating the location or expansion of their business operations in the AllianceTexas region.”
The division’s 10-year business plan for the AllianceTexas region involves the construction of over 3,000 multifamily units, the company’s current land holdings at AllianceTexas include zoning for more than 5,000 multifamily units. In total, Hillwood controls over 50 percent of the multifamily entitlements in the competitive submarket. The pace of new development activity, as well as specific product types and amenities, will be market-driven and designed to appeal to a wide audience. Based on the rate of growth in the region and limited availability of competitive sites, the company anticipates the potential to deliver a new phase of multifamily development every 12-to-18 months. Hillwood Properties’ residential experience in the market includes Monterra Village, the first multifamily project that was completed within AllianceTexas in 2008.
The majority of the planned multifamily units will be concentrated in the 900-acre Alliance Town Center mixed-use development, which stretches along Interstate 35W from North Tarrant Parkway to Golden Triangle Boulevard.
But Hillwood has set its sights beyond AllianceTexas, said McHenry.
Hillwood also has formalized its multifamily management platform and added key staff to its multifamily management team at AllianceTexas. Stephanie Isham has joined the team as property manager for Monterra Village. Isham previously served in senior property manager roles with Lincoln Property Co. and Riverstone Residential Group, where she has been responsible for the lease up of multiple Class A apartment communities. Additionally, Christine Adeeb and Amy Perez, who have served as leasing consultants at Monterra Village for three years, have been hired as full-time Hillwood associates. McHenry and the team will lead the expansion of the Hillwood Multifamily management company as the portfolio grows.
Hillwood is announcing its focus on multifamily at a key time in that market, as apartments rents in the area are at an all time high, according to a recent presentation at the Real Estate Forecast 2012 program by Ben Loughry, managing partner at Integra Realty Resources DFW.
According to Loughry, apartments rents averaged a little more than $800 in 2011, with most new units above $1,000.
Retailer Kohl’s Corp. said Tuesday that it will build a distribution center south of Dallas in DeSoto.
The 951,000-square-foot industrial building will be near Interstate 35E and Centre Park Boulevard and will open this summer.
Kohl’s said the new warehouse will be used to fill orders from its Internet sales business.
“This new facility will ensure that Kohl’s is able to accommodate the tremendous growth of our Kohls.com business,” Ken Bonning, Kohl’s executive vice president of store planning and logistics, said in a prepared statement.
“We currently operate 84 stores in Texas and are pleased to expand our presence with this new facility,” Bonning said.
“We anticipate creating approximately 400 jobs for the community in a phased approach over the next three years.”
Kohl’s operates a dozen warehouses in the U.S. and has distribution centers for its website in San Bernardino , Calif.; Monroe, Ohio; and Edgewood, Md.
Wisconsin-based Kohl’s said it will hire about 200 workers for the DeSoto project before the building opens.
Hillwood Properties leases 2.67 million square feet in 2011
FORT WORTH, Texas (January 25, 2012) – Despite ongoing challenges facing the commercial real estate industry, Hillwood Properties continues bucking national trends by leasing space within its 17,000-acre AllianceTexas development at a brisk pace. In 2011, Hillwood Properties, developer of the AllianceTexas master-planned community, secured new leases and tenant renewals totaling nearly 2.7 million square feet of industrial, office, mixed-use and retail space. The company also sold approximately 14 acres of land to retailers.
“While the economy has proven difficult during the past few years, Hillwood has enjoyed a solid performance at AllianceTexas due to our long-term, strategic plan for the project,” said Mike Berry, president of Hillwood Properties. “Location, multi-modal transportation options and access to a rapidly growing population of employees and consumers have created a great demand for our office, industrial, multifamily, retail and mixed-use product, and these factors will continue to fuel AllianceTexas’ expansion for years to come.”
In 2011, Hillwood Properties leased a significant amount of industrial and office space to companies who wanted to benefit from the development’s wide range of amenities and growing labor force. Among these are the Alliance Global Logistics Hub - one of the nation’s largest inland ports, easy access to major national interstates and close proximity to the development’s existing base of high-profile, global corporations. As a result, AllianceTexas secured tenants to occupy over 2.6 million square feet of space within Alliance Gateway, Westport at Alliance, Alliance Center and Alliance Crossing. Representative tenants included LG Electronics, DSC Logistics, Ryder, Exel, Bridgestone, Staffmark, Trican Well Service, Performance Team, IMDS, DynCorp International, RECARO Aircraft Seating and Equify Financial.
Growth was especially strong at Alliance Town Center in 2011 as retailers continue to be drawn to AllianceTexas’ location in the fastest-growing section of the fastest-growing major metropolitan area in the nation. Alliance Town Center is home to some of the nation’s leading retail brands and welcomed a plethora of new lifestyle-oriented tenants occupying more than 22,000 square feet. These new retail residents include Deluxe Nails, Great Clips, Cinch Cleaners, Baker Bros. American Deli, Pacific Dental, Green Tea House, Koko Fit Club, Palm Beach Tan, Pediatric Urgent Care and Starbucks Coffee. Alliance Crossing experienced similar success with leases or renewals totaling 20,840 square feet of space to Onsite Occupational Health & Safety, Texas Health Resources, Wendy’s, Snooty Pig, Logi-Trans, the Fort Worth Police Association, Dr. James Wharry, DDS, Fast Signs and Pro Cuts.
In addition to leasing retail space, Hillwood Properties sold over 9 acres of land at Alliance Town Center to Cinemark Holdings, Inc. (NYSE: CNK), one of the world's largest motion picture exhibitors, to construct a 14-screen, all-digital movie theatre featuring the company's new Cinemark NextGen design concept. The theatre complex will contain an extremely popular Cinemark XD Extreme Digital Cinema auditorium. Hillwood also sold over 4 acres of land at Westlake Corners to Centennial Fine Wine & Spirits and to QuikTrip. The solid leasing activity at AllianceTexas in 2011 supports the results of a study released last year by Insight Research Corporation, which showed extraordinary growth in the retail and Class A office sectors in 2010. The study also estimated the development’s total regional economic impact over the past 20 years at $40 billion.
ABOUT ALLIANCETEXAS AllianceTexas (http://www.alliancetexas.com/) is a 17,000-acre, master-planned community anchored by the world’s first industrial airport. It includes the Alliance Global Logistics Hub, Circle T Ranch, Heritage, Alliance Town Center, Saratoga and Monterra Village projects. AllianceTexas is now home to 265 companies, which have built nearly 32 million square feet and created more than 30,000 jobs. The community also now includes more than 7,600 single-family homes and 288 luxury apartment homes.
Kohl's (NYSE: KSS) said Tuesday that it will open a new distribution center in DeSoto in south Dallas County.
The Wisconsin-based department store chain had been considering DeSoto, along with other locations, in October. At the time, Dallas County was offering a 10-year, 75-percent abatement on real and business personal property.
The company said in a press release Tuesday that is entered into an agreement to build a 951,000-square-foot fulfillment center for Kohls.com at Interstate 35 and Centre Park Boulevard. The building, at Hillwood’s Crossroads Trade Center, is expected to be completed this summer, at which time Kohl’s said it would close on the agreement.
The facility is expected to initially create 200 jobs and a total of 400 over the next three years, Kohl’s said. Hiring will begin March 1.
Kohl’s, which has 84 stores in Texas, operates 13 distribution centers across the country. It expects sales on Kohls.com to reach $1 billion this fiscal year.
Late last winter, when it was announced that Hewlett Packard will lease 1.4 million square feet of San Bernardino warehouse space, David Burback, who runs Grubb & Ellis’ Ontario office, said it was the deal of the year.
It was a bold statement considering there was still more than 10 months of 2011 left on the calendar. But Burback was right. CT Realty Investors’ HP lease was named Industrial Lease Transaction of the Year at the annual Rexie Awards, which marks the top accomplishments in commercial real estate.
The Inland Empire Chapter of NAIOP, the trade group for commercial real estate, held its awards luncheon Tuesday. Winners in other categories included:
Industrial Portfolio Sale of the Year: Industrial Income Trust purchases four buildings totaling 1.6 million square feet
Industrial Building Sale of the Year: Manulife Financial purchases 819,004 square feet in Fontana
Industrial Land Acquisition of the Year: Alere Property Group purchases 29.51 acres in San Bernardino County
Industrial Leasing Broker of the Year: Colliers International: Steve Bellitti & Thomas Taylor Industrial Investment Broker of the Year: CB Richard Ellis, Darla Longo & Barbara Emmons Public Partner of the Year: San Bernardino County
Industrial Developer of the Year: Watson Land Company – 616,542 square foot building in Redlands
Industrial Owner of the Year: Prologis
These were the honorees in each category for both professionals and projects: Industry Leader of the Year: Doug Dupree, City of San Bernardino Fire Department; Dean Brown, Tejon Ranch; John Burroughs, Commerce Construction/Majestic Realty Co.; Matthew Hargrove, CBPA; Dennis Roy, RGA Office of Architectural Design; Ned Sciortino, Hillwood; Kevin Scott, International Code Council.
Company joins growing list of Class A office tenants; will occupy space at Heritage Commons I
FORT WORTH, Texas (January 17, 2012) – Hillwood Properties, one of the leading real estate investors and developers in the U.S., announced today that it has signed a lease with Equify Financial, LLC for 4,490 square feet of Class A space at AllianceTexas, Hillwood’s 17,000-acre, master-planned community in North Texas. The financial services company will be located in Heritage Commons I, which also includes Hillwood Properties’ headquarters, IMDS and TCC Corporate Services. The Heritage Commons complex includes four office buildings also home to Mercedes Benz Financial Services, DynCorp International and the FAA.
Marketing Manager Reid Goetz with Hillwood Properties managed the transaction with Curtis Shore representing Equify Finanical.
“We’re excited to have Equify Financial join our expanding roster of first-class corporate residents,” said Goetz. “Equify Financial represents an increasing segment of office professionals, who are drawn to the significant benefits and amenities at AllianceTexas. The company is a great example of the growth of financial and professional services firms within the development.”
“With the completed lease to Equify Financial, our office product within AllianceTexas is now 100 percent leased,” said Mike Berry, president of Hillwood Properties. “We anticipate future office development in the coming year to meet the increased demand for office within the AllianceTexas corridor.”
Equify Financial, LLC is a new independent, middle market, equipment finance company with a unique perspective and culture. Equify provides financial services to customers and equipment providers at all levels of the construction, transportation, gas and oilfield services, and related industries.
“We have put together a strong team of people to be part of this incredible company,” said Pat Hoiby, president of Equify Financial. “We’re excited to join the AllianceTexas roster of tenants as we launch into 2012, and we are looking forward to building many great customer partnerships and growing our dynamic organization.”
Other major activity taking place at AllianceTexas includes the 262,000-square-foot Texas Health Harris Methodist Hospital Alliance currently under construction; the recently opened 10,500-square-foot ER at Alliance emergency treatment facility; and the $312-million, 712,000-square-foot Deloitte University, which opened last fall in the Circle T Ranch. Alliance Town Center also continues to be a major retail draw in the development, with recent announcements by Mi Cocina and Cinemark.
An economic impact report recently released by Hillwood revealed that the AllianceTexas master-planned development continues to be one of the nation’s leading models for successful public-private partnerships, providing more than $2.1 billion in economic impact to the Fort Worth region in 2010, the most recent year for which data are available. Anchored by the world’s first industrial airport, and serving as a key economic driver for the North Texas region, AllianceTexas’ cumulative economic impact on the surrounding area has surpassed $40 billion and has created more than 30,000 jobs during the 20-plus years of the project. ABOUT ALLIANCETEXAS AllianceTexas (http://www.alliancetexas.com/) is a 17,000-acre, master-planned community anchored by the world’s first industrial airport. It includes Alliance, Circle T Ranch, Heritage, Alliance Town Center, Saratoga and Monterra Village projects. AllianceTexas is now home to 265 companies, which have built nearly 32 million square feet and created more than 30,000 jobs. The community also now includes more than 7,600 single-family homes and 288 luxury apartment homes. ABOUT HILLWOOD Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and as the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for nearly 60 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center and 2,000-acre AllianceCalifornia developments. http://www.hillwood.com/. ABOUT EQUIFY FINANCIAL Equify Financial, LLC is a new independent, middle market, equipment finance company with a unique perspective and culture. Their mission is to become the premier finance and lease provider in the industry. Their purpose is to provide financial services to customers and equipment providers at all levels of the construction, transportation, gas and oilfield services, and related industries. Based in Fort Worth, Texas, Equify Financial has a seasoned, professional sales team in place that covers Texas and surrounding states. With time, their servicing area will expand to cover the entire U.S. The Equify team, which offers more than 125 years of combined lending experience, utilizes an innovative concept of offering creative solutions for customers while maintaining sound lending practice. This approach provides the ability to lend without restrictions that limit bank affiliated lenders.
Hillwood Communities said Friday that it will partner with Realty Capital Management in Dallas to provide new capital and jump-start the planned 1,000-acre Belmont project in Northlake and Argyle, several miles north of Hillwood's Alliance development.
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Realty Capital, Hillwood partnership readies 1,000-acre development
A $1 billion mixed-use master-planned development in Denton County — one of the largest residential projects to get under way in four years — is scheduled to start this summer.
The 1,000-acre development called Belmont would bring up to 3,500 homes to the northwest corner of FM 407 and Interstate 35W in Argyle and Northlake, as well as over 100 acres of mixed-use development including retail, restaurants and office buildings.
The catalyst for the project: A partnership between Dallas-based Realty Capital Management, and new partner Dallas-based Hillwood Communities, a residential land developer and subsidiary of Ross Perot’s Hillwood Properties. It closed on Dec. 28.
“This is a natural extension of Alliance-Texas,” said Fred Balda, president of Hillwood Communities. “It was a strategic decision to get involved because we know the area.
This will be the next big master-planned development.” Balda worked with Hillwood Communities’ Angie Mastrocola and Tim Woliver on the partnership.
Hillwood Communities and Realty Capital went through a yearlong courtship before deciding to partner on the joint venture.
The project was compelling for a partnership, Balda said, because Realty Capital, which has worked on the site for six years, has had the site zoned and prepared the land’s utilities.
The $22 million sewer line — paid for by Realty Capital, the developers of Canyon Falls, along with the Flower Mound, Northlake, Argyle and Corral City municipalities — is scheduled for completion by Trinity River Authority in April. That sewer line will allow developers to tap into a desirable submarket.
“We’ve already got some of the top home builders interested,” said Richard Myers, managing director of Realty Capital. “There’s a great amount of demand from families with kids in the submarket because of the Argyle school district.”
The venture has given Argyle Independent School District property to develop an elementary school on 12 acres and a middle school on 24 acres. The school district would be responsible for developing the schools.
Myers’ worked with Tim Coltart, managing director of Realty Capital, on the partnership.
“The beauty of developing an area that’s been without utilities is that there is significantly less than a two-year supply of lots,” Coltart said. “It’s an untapped market.”
Belmont’s initial phase will include about 250 homes and potentially a small retail center. The homes will be moderately priced in the $200,000 to $400,000 range.
The developers will begin horizontal development on Belmont following the completion of the sewer line this summer. Subcontractors for the horizontal development, such as earthwork, sewer and water lines, street work, light poles and landscape installers will be needed for the project.
Hillwood Communities plans to contract with home builders for the development in the next 60 days. Lots are scheduled to be delivered to home builders by early 2013.
Belmont’s first phase could begin housing residents by spring 2013. The entire development is expected to take 10 to 15 years to finish.
“We want to fast track it,” Balda said. “The market is ready for the community.”
A long road The economic downturn hindered Belmont’s development, as it did other residential projects in North Texas, Myers said.
Myers and his team at Realty Capital spent more than $25 million on the project during the six years of readying the 1,000-acre tract.
The Belmont project is one of the few significant residential projects announced in the past four years, said Ted Wilson, principal at Dallas-based Residential Strategies Inc. “The lot supply in north Fort Worth is really tight today, and residential development moving up the Interstate 35W corridor is attractive,” Wilson said.
“The development will capture some Flower Mound buyers and compete for buyers with other master-planned communities, such as Lantana and Trophy Club (developments).”
The development options are limited in north Fort Worth, with a flood plain area north of Grapevine and little access to utilities, he said. The Belmont site is one of the last large tracts of developable land in the upper Interstate 35W corridor, he said.
“There are only a handful of developers that have the wherewithal to do these kind of developments,” Wilson said. “This was a deal worked out in the last cycle that was waiting for new sponsorship to go forward.”
A new deal Hillwood Communities is finishing building home lots for its Heritage project, a 2,300-acre master-planned community in north Fort Worth.
Balda says the partnership will review Belmont’s community design, branding, land plan and landscaping to put Hillwood’s design on Realty Capital’s master plan.
“Realty Capital has done a wonderful job, and we want to take what they’ve done and enhance and refine it further and put the Hillwood stamp on it before we take it to the marketplace,” he said.
“The last few years have been strained, and we’re excited to start a new deal.”
Residential developer Hillwood Communities said Friday that its starting work soon on its next project in the Interstate 35W corridor.
Hillwood is teaming up with Dallas' Realty Capital Management to develop 1,000 acres between Fort Worth and Denton on F.M. 407
The new master-planned residential community will be called Belmont and will have homes priced from near $200,000 to more than $400,000, according to Hillwood.
About 2,500 homebuilding lots and 130 acres of supporting mixed-use construction are planned over time for the Belmont project.
Hillwood has already built large residential projects and commercial developments in the area along I-35W north of Fort Worth.
”Hillwood is proud to continue the AllianceTexas legacy of success with a new master-planned community in the expanding north Fort Worth area,” Fred Balda, president of Hillwood Communities, said in a statement. “Hillwood has seen tremendous success in this popular area and we are excited to begin improvements that will greatly enhance the area for new businesses and residents."
Hillwood plans to start work on the Belmont project this summer.
Founded by Dallas' Perot family in the late 1980s, Hillwood Communities has built 70 residential communities across the United States including several large projects in North Texas.