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- Mesquite | 280-Unit Multifamily HFC
Mesquite | 280-Unit Multifamily HFC
6/3/24 | Windbell Crossing
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CC June 3, 2024 - P&Z May 13, 2024
District: 4 | Northwest Mesquite
280-Unit Multifamily HFC | 900 Windbell Circle | Approved
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DISTRICT: 4
Windbell Crossing 900 Windbell Circle
Northwest Mesquite | 12.35 Acres | 280 Units | Approved
Provident Realty Advisors has partnered with the Mesquite Housing Finance Corporation (HFC) to provide 280 units along Highway 635. The multifamily product straddles Windbell Circle in the northwest sector of District 4 (CM Tandy Boroughs). It will offer 280 affordable units - 50% at 80% Area Median Income (AMI) and 90% under 140% AMI.
The deal, outlined in a Memorandum of Understanding (MOU) dated November 30, 2023 and attached below, features some notable terms. The Mesquite HFC will own the land, while a newly formed Partnership, owned by Provident and the HFC, will develop and manage the improvements under a 99-year ground lease. This structure ensures long-term alignment of interests and stability for this important project.
Provident will earn a developer fee of 5% of the total development costs. The Mesquite HFC will earn an acquisition fee of $200,000, payable by the Partnership at closing. In addition, the HFC will receive an annual lease payment starting at $195,000, increasing by 3% annually, commencing after the third anniversary of the start of construction. This lease payment will be the first item in the cash flow waterfall under the Partnership Agreement. Plus they’ll add a management Fee of $10,000 per year. Provident will take on the construction and lease-up risk, not the HFC or its affiliates.
The Mesquite HFC will capture 1% of the gross sales price or loan amount in the event of a sale or refinance of the project.
Planning & Zoning 5/13/24
Approved
The Planning & Zoning Commission, while generally supportive, raised concerns about traffic, EV chargers, amenities, and tree preservation.
Commissioner Millie Arnold inquired about the involvement of local builders and property managers, recognizing the importance of a strong local presence in maintaining the quality of the development over time. Provident shared the sentiment and committed to local partners who have a vested interest in the long-term success of Windbell Crossing and the Mesquite community.
‟A lot of times what happens is we have builders that are from out of state…owners that are from out of state. The builders build the properties, and then it's managed out of state, not so much within the complex of the City. That's one of my pet peeves. I don't want things to deteriorate over the years. That is my concern.
‟My favorite topic - EV chargers. It needs to be asked, what provisions they're going to have for those?
Developer: Provident Realty Advisors, Julian (Jay) Hawes (MOU) LinkedIn Email: [email protected], John Hickman (Zoning) Phone: (972) 385-4100 Email: [email protected] LinkedIn
Owner: Mesquite Housing Finance Corporation (HFC), Daniel Alemán, Jr. (Mayor) Email: [email protected] Twitter
Staff Report: Z0224-0344 SR
Memorandum of Understanding (MOU): Windbell Crossing MOU
Project Plans: Z0224-0344 Plan
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