Last week, Behringer Harvard kicked off construction of Allegro II, a second phase of an Addison apartment community it acquired in late 2010. Now comes word that Hillwood has broken ground on a second phase of its Monterra Village, a 130-acre project within its 900-acre Alliance Town Center development.
The expansion will add 262 one-, two-, and three-bedroom apartments. The units should be ready for move-in this September; pre-leasing will begin in the second quarter of 2012.
It’s the ideal time to bring additional multifamily units to this market, said Mike Berry, president of Hillwood Properties, in a statement. “Rapid growth in north Fort Worth, demand for greater housing diversity, and lifestyle and demographic shifts are driving demand,” he said. “Forecasts indicate this demand will remain strong for some time to come, since there is a limited supply of multifamily product to meet the population explosion in the region.”
Built in 2008, Monterra Village was the first multifamily project completed within Hillwood’s 17,000-acre AllianceTexas. It also was the first smoke-free property in North Texas. The 288-unit community has maintained an occupancy rate of 95 percent during the past year.
Texas Capital Bank is providing construction financing for the second phase. Hillwood also refinanced Phase I of the project with Prudential Mortgage Capital. Monterra Village is zoned for an additional 476 apartment units, which may be developed in the future. The project is also zoned for retail and commercial uses.
Last month, Hillwood, the real estate investment and development company led by Ross Perot Jr., announced plans to add as many as 3,000 apartment units within Alliance during the next 10 years—with the potential to take that number up to 5,000.
Behringer Harvard, meanwhile, is adding 121 units at Allegro, bringing the total number of apartments within the community to 393. Located on Spectrum Drive, it’s part of the 70-acre Addison Circle mixed-use development off the Dallas North Tollway.
“Allegro I has been popular with young professionals who appreciate its proximity to major Dallas employment centers, world-class retail centers, and numerous dining and entertainment venues,” said Mark T. Alfieri, chief operating officer of Behringer Harvard, in a statement.
The company’s Multifamily REIT I Inc. portfolio includes investments in 43 multifamily projects in 13 states, for a total of 11,295 apartment units.