News Article | 1/21/2006

Victory developers gain new partner

Developers of the huge Victory project near downtown Dallas have a new partner.

Florida-based investor Estein and Associates will invest in all the projects currently under way in Victory, which total about $1 billion.

The Orlando firm joins Ross Perot Jr.’s Hillwood and Tom Hicks as a major owner in the development.

“They have become a very significant investor in the project,” Jonas Woods, president of Hillwood Capital, said Friday. “They bought into everything and made the commitment to fund their share of the projects to come.”

Financial terms of the new partnership were not disclosed.

Victory projects in the new deal include the W Hotel and Residences, the Terrace condominiums, the Vista apartments, Victory Plaza retail and office and the Cirque apartments. The House by Starck and Yoo condominium tower, Victory Tower condominiums, hotel and office space and One Victory Park office and retail tower are planned to start in the next few months.

“It is unusual to find unique real estate projects with development partners that invest significant equity in their projects,” Lothar Estein, president of Estein and Associates, said in a statement. “I’m very excited to be investing with Hillwood, as I know I can rely on them to manage the project with our interests well-aligned.”

Estein and Associates is a partner in developments all over the country, including Florida’s Peabody Hotel in Orlando and the Citicorp Center office complex in Chicago. The company has been in business since 1994. Estein and Associates partners with private companies, pension plans and real estate investment trusts.

Bringing the Florida company into the Victory project is important because development has grown at a faster rate than originally anticipated, Mr. Woods said.

“It is additional capital necessary to continue,” he said. “It solidifies the financing on all the future development.”