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Grand Prairie HFC
3/18/25 – 3/4/25
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HFC March 18, 2025
District: 4 | Southwest Grand Prairie
252-Unit HFC Acquisition | 3000 Bardin Rd | Presentation
District: 2 | Far South Grand Prairie
463-Unit HFC Acquisition | 3951 Dechman Dr | Approved
CC March 4, 2025
GPHFC PILOT Payments | Approved
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DISTRICT: 4
Residences at 3000 Bardin 3000 Bardin Rd
Southwest Grand Prairie | 8 Acres | 252 Units | Presentation
Grand Prairie Housing Finance Corporation 3/18/25
Market MF → WF HFC | Presentation
Jeremy Woodard of Parliament Drive is proposing a $56.2M acquisition and conversion of a market rate asset into workforce housing through Chapter 394 financing.
U/ Product
This 2022-built, 252-unit Class A property at 3000 Bardin Road in Grand Prairie boasts 92% occupancy despite being managed by a hotel developer with limited multifamily experience. The property sits on 8 acres with 31.47 units per acre density and features 5-story construction with elevator service. The total rentable square footage is 228,477 SF with an average unit size of 909 SF across a mix of 141 one-bedrooms, 103 two-bedrooms, and 8 three-bedrooms.
U/ Finance
Parliament Drive, a workforce housing operator led by Jeremy Woodard (formerly with Cardinal Group and Cerberus Capital), is proposing to acquire the asset for $56,226,000 ($223,119/unit) with a modest $250,000 capex budget plus $1.96M in GP/HFC fees and closing costs, bringing the all-in basis to $58.43M.
The deal's core value proposition hinges on converting 50% of units (126 total) to income-restricted workforce housing through Section 394 tax-exempt bond financing via the local Housing Finance Corporation. The income restriction would follow a two-tier approach: 25 units (10%) at 60% AMI and 101 units (40%) at 80% AMI. Current market rents at the property are $1,708 for one-beds, $2,147 for two-beds, and $2,743 for three-beds, which are already 11-22% below comparable new Class A properties in the submarket (Jefferson Vines, Avilla Traditions, Axis Grand Crossing). The 60% AMI restricted rents would be $1,147/$1,377/$1,590 (33-42% below market), while 80% AMI rents would be $1,530/$1,836/$2,120 (10-23% below market). The annual rent savings across all restricted units totals $499,321.
While the capital stack specifics aren't fully detailed, the deal appears to utilize tax-exempt bond financing through the HFC with what looks like a 15-year term. The acquisition requires GPHFC upfront fees of $140,565 and closing costs of $1,816,510, on top of the $56.2M purchase price and $250K capex budget. The pro forma includes an annual HFC fee of $167,000 with 3% annual increases, suggesting an ongoing bond administration fee structure typical of these arrangements.
Term | 3000 Bardin Proposed Terms 3/18/25 |
|---|---|
Upfront Fee | $140,565 |
Administrative Fee | $10,300 per year + 3% escalator |
Lease Payment | $167,000 per year (15%) + 3% escalator |
Closing Costs | $1,816,510 |
Capex | $250,000 |
Soft Costs | $250,000 |
Total Estimated Proceeds | $15,178,078 (78% of tax benefit) |
Purchase Price | $56,226,000 |
Total Financing | $58,440,075 |
The 15-year pro forma assumes 3% annual growth in both income and expenses. Year 1 shows $5.97M in effective gross income against $1.5M in operating expenses (25% expense ratio), yielding a $4.48M NOI. Property taxes are positioned at $0 in the pro forma, suggesting a full tax exemption through the HFC structure. Notably, Parliament Drive is adding value through professional management and an enhanced resident services package including Esusu credit building (which typically increases resident credit scores by 20 points), after-school programs, wellness initiatives, and Housing Choice Voucher facilitation.
The location is particularly well-suited for workforce housing, with 20+ schools within a 5-mile radius employing 3,000+ teachers and staff earning an average of $53,467 annually. Several medical facilities nearby employ nurses earning approximately $57,757 annually. These demographics align perfectly with the 60-80% AMI targeting, as current market rents are forcing similar income households to spend over 50% of their income on housing, with some Grand Prairie properties seeing rent burdens approaching 60%. The property has experienced 20+ evictions in the past 11 months, underscoring the affordability challenges.
The property benefits from excellent physical attributes with institutional-quality amenities including a clubhouse, fitness center, pool, and community room. Parliament Drive will add additional community amenities including a walking trail around the property, managed WiFi, package delivery systems, and smart home technology. The 2022 construction vintage provides significant advantages over older housing stock, with modern layouts, finishes, and mechanical systems requiring minimal capital investment.
Developer: Parliament Drive Real Estate, Jeremy Woodard Email: [email protected] LinkedIn
Public Partner: Grand Prairie Housing Finance Corporation (GPHFC), Harold Clayton (Buddy) White Phone: (214) 394-3793 Email: [email protected], Greg Geissner Email: [email protected] LinkedIn
Original Owner: Anant R Patel Phone: (469) 480-5475 Email: [email protected] LinkedIn
Staff Report: Residences at 3000 Bardin
Memorandum of Understanding (MOU): Residences at 3000 Bardin Terms
DISTRICT: 2
Prairie Gate I & II 3951 Dechman Dr (PI), 3930 Westcliff Rd (PII)
Far South Grand Prairie | 23 Acres | 463 Units | Approved
Grand Prairie Housing Finance Corporation 3/18/25
Market MF → WF HFC | PI & II Res | Approved
The Grand Prairie Housing Finance Corporation approved a 463-unit acquisition deal spanning two phases at their March 18th meeting. The project involves two partnerships $80.55 MM in combined financing. Doug Jackson from Jackson Property Company presented the deal that cleared its final hurdle after developer/owner Rodney DeBaun and all parties aligned that morning.
Both Prairie Gate phases utilize an HFC ownership structure with ground leases to control the underlying real estate while partnering with private entities. They mandated a 15-year prohibition on selling the fee interest, blocking any quick flipping schemes. As board member explained:
‟We had some language removed to where Mr. DeBaun could not sell this property sooner than the agreement laid out... in our ground leases we usually put a restriction it cannot be the fee interest can't be sold within 15 years and that's been agreed to now.
GPHFC will acquire both sites and maintain long-term control via ground leases to their respective operating entities. All parties acknowledged the Transfer of Physical Assets (TPA) approval from HUD represents a timing constraint.
‟No matter how hard we push and how hard they push, it's still going to take the time it's going to take.
Phase I 3951 Dechman Dr
14.52 Acres | 264 Units
Phase I employs an LLC structure with GPHFC as sole member of "GPHFC Prairie Gate I MM, LLC" which serves as managing member of "Prairie Gate Community, LLC" - the operating company. Financing comes through a $45,056,000 HUD-insured loan via Dwight Capital, LLC. The operating agreement allows for equity investment partners to participate.
This phase requires HUD approval before closing can occur. The property will execute payment agreements with the City of Grand Prairie to offset costs for municipal services to the project.
Phase II 3930 Westcliff Rd
8.48 Acres | 199 Units
Phase II uses a limited partnership structure: GPHFC serves as sole member of "GPHFC Prairie Gate II MM, LLC" which functions as general partner of "PG Phase II, L.P." The financing here comes through a $35,500,000 conventional loan from Pinnacle Bank without HUD insurance.
Like Phase I, this property will execute similar payment agreements with the City of Grand Prairie for services provided to the project.
Both phases implement identical affordability requirements ensuring mixed-income occupancy:
Minimum 10% of units for households at ≤60% AMI
Minimum 40% of units for households at ≤80% AMI
Minimum 40% of units for households at ≤140% AMI
This tiered approach allows for viable operations while serving various income levels within a single property. 90% of units in both phases must be occupied by individuals or families earning no more than 140% of area median income.
The board unanimously approved all four resolutions.
Developer/Owner: Aerofirma, Rodney DeBaun Phone: (972) 263-6796
Public Partner: Grand Prairie Housing Finance Corporation (GPHFC), Harold Clayton (Buddy) White Phone: (214) 394-3793 Email: [email protected], Greg Geissner Email: [email protected] LinkedIn
Capital Partners: Dwight Capital, LLC ( PI Lender); Pinnacle Bank (PII Lender)
Resolutions: Prairie Gate PI
Resolutions: Prairie Gate PII
GPHFC PILOT Payments
City Council 3/4/25
35% Lease PILOTs (6) | Approved
The standard Grand Prairie HFC preferred deal profile is workforce acquisition/rehab. Typical structure involves a 99-year ground lease (75 years in one case) where the HFC owns the land while developers own the improvements. This ownership structure triggers complete tax exemption under Chapter 394 of the Texas Local Government Code, eliminating all ad valorem taxes—not just city taxes, but also school district, county, and other taxing entities.
PILOTs for six HFC deals were approved on March 4, 2025 that span both Dallas and Tarrant counties, involving developers like NeuRock (3 deals), CAF Funds, Saigebrook, and Post Investment Group. All follow a similar pattern (aside from one outlier): the HFC contributes 35% of its ground lease payments back to the City as a Payment in Lieu of Taxes (PILOT). Only Lapiz Flats deviates with a fixed initial PILOT payment to the City of $3,850 that increases by 3% annually.
This arrangement is not standardized across the state. HFCs can all lease payments and fees to reinvest in affordable housing initiatives.
‟Frankly, we are fortunate that our HFC is willing to give us 35% back in a PILOT.
This is a voluntary arrangement, not required by law, but is becoming standardized in Grand Prairie.
HFC Acquisition Sentiment
The City Council discussion highlighted tensions between affordable housing initiatives and budget considerations. A community member voiced concerns about tax exemptions for large housing developments while many residents struggle financially: "I'm not being difficult to get along with when the state of Texas has a $30 billion surplus..." and noted that a long-established "large apartment complex suddenly off the tax rolls right across the street from the post office" after operating for "23, 24 years" was now "no longer paying taxes."
A major issue for the council was the realization that outside HFCs can operate within Grand Prairie without local approval. Mayor Ron Jensen explained:
‟We have eight other properties in town that outside the city HFCs have purchased not needing any approval from the city council or anybody, and they purchase them and they immediately come off the tax rolls.
The city is seeking legislative relief to gain right of first refusal before outside HFCs can enter their jurisdiction.
‟We are working with Austin for legislative relief to allow us to have the right of first refusal before a HFC from Garland or wherever can come in here. This may be something extremely hard to get done in Austin because Austin feels like this is a way for us to get more affordable housing available in metropolitan areas
The Mayor acknowledged the dilemma:
‟There's some that want to keep it because it provides affordable housing. There's two sides of this coin. I don't like it because it takes everything off the tax rolls. There ought to be an equitable solution to that.
HFC Meeting Insights
The March 18 HFC meeting discussion tracked the financial flows between developers, the HFC, and the City.
Sean Jackson, reporting on finances, noted:
‟You will get almost $200,000 next week from the ground lease payments and then the PILOTs for Tides of Westchester, The Grand at Hill Street, and Derby Park.
PILOT Terms in MOUs
Aside from PILOTs paid to the City from the GPHFC, PILOTs are also included in GPHFC MOUs to capture a portion of the exempted taxes as a fee from the developer. Examining the NeuRock’s March 2023 MOU for Tides on Westchester reveals that the original payment structure required only 15% of tax savings: "The Company shall pay to the Ground Lessor an annual lease payment initially in an amount equal to fifteen percent (15%) of the ad valorem tax savings from the Exemption." The March 2025 PILOT payments to the City stipulate 35% of ground lease payments to be remitted to the city, or 35% of 15% Tax Savings.
It’s important to note that some lease payments follow syncing the lease payment to the ad valorem tax savings while others define a specific dollar amount.
GPHFC’s outlier new construction deal using 9% tax credits Lapiz Flats outlines no PILOT payments in the April 2024 MOU. Instead, there's a 75-year Ground Lease structure where GPHFC owns the land and the developer (Saigebrook) owns improvements. The developer pays an up-front Ground Lease payment equal to the purchase price of the land ($2,100,000). In March 2025, the GPHFC committed to a $3,850/year + 3% escalating PILOT to the City despite not capturing a percentage of the exempted taxes from Saigebrook.
Going further into some proposals received, the Grand Prairie HFC has seen a consistent Payment in Lieu of Taxes (PILOT) framework. Note: these are proposed terms to the HFC and not executed MOUs.
Base rate: 10-15% of exempted property taxes
Annual escalation: 3% yearly increase
Revenue split: 35% to City of Grand Prairie, 65% retained by GPHFC
Additional fees: Construction, management, and disposition fees supplement the PILOT
Project-Specific PILOT Arrangements
The Destino (Acquisition/Rehab)
Annual Lease Payment: $70,523/year + 3% annually
35% of this payment ($24,683/year + 3%) goes to the City
65% of this payment ($45,840/year + 3%) stays with GPHFC
Partnership Management Fee: $10,000/year + 3% annually
Upfront Acquisition Fee: $200,000
Construction and Compliance Monitoring Fee: $3,500/year
Additional community benefits:
Green improvements: $96,000
After-school programming: $45,000
Health and job fairs: $25,000
Financial literacy seminars: $3,500
Public benefit percentage: 70.29%
Atlas Green (New construction Workforce Housing)
10% of estimated taxes with 3% annual increase (35/65 City/HFC split)
Hard Cost Fee: 1.50% of project construction costs
Partnership fee: $10,000/year + 3% annual increase (35/65 split)
Upfront Fee: 0.50% of total project cost
Sale/Refinance: 1.5% of transaction proceeds
Jefferson Vine (Acquisition)
PILOT structured against $1.1M in annual taxes (assessed value: $49.7M)
Tax breakdown across multiple authorities (Arlington ISD: $548K, Dallas County: $328K)
Effective millage rate: 2.25%
PILOT payments calculated as percentage of these exempted taxes
NeuRock of Meadow Green (Acquisition/Rehab)
Annual Lease Payment: $35,000/year + 3% growth
City PILOT portion: $12,250/year (35%) + 3% growth
Additional partnership fees create supplemental revenue streams
Marabella on Pioneer (Acquisition/Rehab)
Annual Lease Payment: $109,517 (15% of prior year's taxes) + 3% growth
Management Fee: $10,000/year + 3% growth
Projected City PILOT revenue: $479,545 over project term
More on the GPHFC:
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