- DFW Ultraground
- Posts
- Roundup
Roundup
Anna, Richardson, Irving
Welcome to Ultraground. We aggregate deals for you.
Anna CC February 11, 2025
340-Unit PFC | 900 Buddy Hayes Blvd | Approved
Irving CC January 16, 2025
District: 3 | Northwest Irving
406-Unit Mixed-use | 4105 Esters Rd | Postponed Indefinitely
Richardson CC February 10, 2025
District: 1 | Central Richardson
279-Unit Multifamily | SWC of S Greenville Ave & E Polk St | Approved
District: 1 | Northeast Richardson
443-Unit Multifamily | 250 E Arapaho Rd | Approved
You saved: 1h 41m, 4h 46m, 2h 11m
ANNA
Anna CC February 11, 2025
340-Unit PFC | 900 Buddy Hayes Blvd | Approved
Meryl Street 900 Buddy Hayes Blvd
West Anna | 12.88 Acres | 340 Units | Approved
NRP’s Meryl Street Public Facility Corporation (PFC) deal received final approval from the Anna City Council on February 11, 2025. The 340-unit development will be located at 900 S. Buddy Hayes Blvd at the southeast corner of US 75 and FM 455, with groundbreaking scheduled for February 2025.
Comerica Bank has been formally designated as administrative agent for the construction loan. The facility is structured as a leasehold mortgage with Meryl Street LP (the operator) as borrower, leasing the property from APFC Anna Apartments SLP, LLC through a 99-year ground lease. Standard assignments of leases, rents, and construction contracts secure the financing.
The equity structure involves a joint venture between NRP Group and Parse Capital, operating as Meryl Street JV, LLC. This partnership serves as general partner in the ownership structure, bringing together NRP's development capabilities and Parse's institutional capital.
APFC Anna Apartments Contractor, LLC will function as general contractor, capturing sales tax exemption on construction materials. NRP Contractors II LLC will serve as master subcontractor with a 5% contractor fee plus general conditions, a 1.5% IGA fee, and a 3% contingency. The APFC contractor entity receives a 1% fee ($554,421) split between closing and completion.
The ownership structure delivers full property tax exemption through the PFC. The PFC's compensation includes an $806,552 structuring fee and upfront land payment at closing, followed by $27,000 annual ground lease payments (escalating 3% annually) and a $10,000 annual partnership management fee (also with 3% escalation). The exit provisions grant the PFC 1% of any third-party sale price and 10% of net proceeds on first refinancing only, generating approximately $2 million over 15 years.
The unit mix comprises 70% one-bedroom and 30% two-bedroom units. The affordability structure allocates 50% of units at market rate, 10% at 60% AMI, and 40% at 80% AMI. This configuration specifically targets professionals and couples to minimize school impact.
The development includes a 2.5-acre land donation for a public park with pickle-ball courts, a pavilion, dog park, and trail connections. CBRE provided the independent underwriting assessment required under the 2023 PFC statute, confirming the project wouldn't be feasible without PFC participation.
This transaction represents the final PFC project in Anna's currently approved pipeline. Chapman and Cutler LLP served as legal counsel with Hilltop Securities as financial advisor to the APFC. First resident move-ins are projected for April 2026 with full completion by November 2026.
City Council 9/26/23
MOU | Approved
APFC's compensation comes through multiple streams. At closing, they receive an $806,552 structuring fee and an upfront lease payment equal to the price of the land. Once the property stabilizes, they begin collecting $27,000 annually in ground lease payments, which increase by 3% each year. They also receive a $10,000 annual partnership management fee that likewise increases 3% annually. On disposition, APFC gets 1% of any third-party sale price, and they're entitled to 10% of net proceeds on the first refinancing only. These various payment streams are projected to generate $2M over 15 years.
The developer's returns are structured through several mechanisms. NRP receives a 3.5% development fee, paid in stages with 30% at construction loan closing, 50% drawn monthly during construction, and the final 20% held until certificate of occupancy. Their property management arm earns the greater of $35 per unit monthly or $9,000 monthly during lease-up. After stabilization, this shifts to the greater of $35 per unit monthly or 3% of effective gross income, never falling below $9,000 monthly.
The construction arrangement is designed to capture sales tax exemption through APFC's public status. An APFC affiliate serves as general contractor, earning a 1% fee of $554,421 split between closing and completion. NRP Contractors II LLC, as master subcontractor, receives a 5% contractor fee plus general conditions, a 1.5% IGA fee, and carries a 3% contingency.
Professional fees are front-loaded. Both Chapman and Cutler LLP as Special LP Counsel and Hilltop Securities receive identical compensation: $25,000 each at MOU execution (non-refundable) and $100,000 each at closing.
Professional fees are front-loaded. Both Chapman and Cutler LLP as Special LP Counsel and Hilltop Securities receive identical compensation: $25,000 each at MOU execution (non-refundable) and $100,000 each at closing.
U/ Finance
Term | |
|---|---|
PFC Structuring Fee | $806,552 |
PFC Management Fee | $10,000/year + 3% escalator |
Contractor Fee | 1% of construction hard costs ($554,421) |
Lease PaymentPFC/HA Initial and/or Upfront | Land price upfront + $27,000 annually w/ 3% escalator |
First Sale/Refi Fee | 1% gross sale, 10% net refinancing |
Subsequent Sale/Refi Fee | 1% of gross sales price |
Contingency | 3% |
Read the Full Analysis: 2/11/25 - 9/26/23 | Meryl Street
Developer: The NRP Group, Alena Savera Phone: (817) 657-8368 Email: [email protected] LinkedIn
Capital Partners: Comerica Bank (administrative agent), Parse Capital (Equity)
Public Partner: Anna Public Facility Corporation (PFC), Mayor Pro Tem Stan Carver II Phone: (214) 831-5394 Email: [email protected]
Original Owner: David Claassen Phone: (214) 361-8300 Email: [email protected]
Staff Report: Meryl Street SR
GP Resolutions: Meryl Street Res
Project Plans: Meryl Street Plan
Memorandum of Understanding (MOU): Meryl Street MOU
IRVING | DISTRICT: 3
Irving CC January 16, 2025
406-Unit Mixed-use | 4105 Esters Rd | Postponed Indefinitely
DISTRICT: 3
Walnut Hill Mixed-use 4105 Esters Rd
Northwest Irving | 9.52 Acres | 406 Units | Postponed Indefinitely
City Council 1/16/25
S-P-2, C-C → S-P-2, MU | Postponed Indefinitely
Woodhaven Development reduced their proposed mixed-use product from 575 units (60.4 units/acre) to 406 units (42.6 units/acre), increasing retail from 15,000 to 20,340 square feet, yet saw Irving's City Council unexpectedly favor their original higher-density design over the scaled-back version Planning & Zoning pushed for.
The developer's projected rents exceeded $2.00/sf for both designs, with the higher-density podium structure commanding a premium of 25-30 cents over the wrap-style building. The site, positioned between Esters Road and Highway 161 on a 9.5-acre tract, has significant grade changes that factored into site planning—a common challenge with Highway 161 corridor parcels.
The 10-month entitlement saga reveals a notable disconnect between Irving's Planning & Zoning Commission and City Council regarding their vision for development along the 161 corridor. This divergence creates both challenges and opportunities for multifamily developers in the city.
Planning & Zoning denied the original April 2024 proposal of 575 units (full report here) in two 5-story modern podium buildings, primarily citing inadequate retail percentage (2.84%) compared to the required 10% for mixed-use developments in the Highway 161 overlay district.
‟At 3.9% ratio when we're requiring 10%, I mean we've had other applicants where we've not approved it just because of that.
The revised design featured traditional architectural elements, varied heights (3 stories along Esters transitioning to 5 stories toward Highway 161), and increased retail space, yet still only reached 3.9% commercial usage—well below the required 52,146 square feet of retail.
City Council's response proved surprising. Multiple councilmembers preferred the original higher-density design that P&Z rejected. Councilman LaMorgese made his preference clear, noting the airport proximity would attract professionals.
‟I was more impressed with the first origination of it. If you're at 20,000 square feet of retail now but if it's half empty like down the Blue Star Property, it doesn't do much good.
Councilman Cronenwett agreed:
‟The original presentation I think is a better product... it being a Class A+ and higher value, I think I would prefer that too.
Here is the previous design Council was referring to:
The developer Robert Dye artfully emphasized the site's market position, noting proximity to Wells Fargo, Caterpillar, and other major employers, plus DFW's Terminal F.
‟12 to 15,000 jobs set to open in 2027, right around the time this project would be coming online.
This employment-based demand argument resonated with Council but hadn't swayed P&Z.
Mayor Stopfer played a pivotal role in the hearing's unexpected outcome. Rather than voting on the reduced-density plan, he suggested postponement to allow the developer to bring back the original higher-density design, effectively reversing the P&Z's direction. Several council members, including District 3 Councilman Abdul Khabeer (who represents the area), expressed support for development that would activate the underutilized corridor:
‟There are huge parcels surrounding this area that are just vacant and owned by DFW. I think this would be a good addition in that area.
The community response was minimal, with only two residents submitting formal feedback. This limited engagement is worth noting for future Irving projects—well-organized opposition didn't materialize despite 83 notification letters being sent. The lone vocal opponent, Santos Castillo from Marcillia Circle, argued for single-family homes instead of apartments, but Councilman LaMorgese directly countered that the site was "not suitable for single family at all" due to topography and location.
Irving's 10% commercial requirement for Highway 161 overlay appears non-negotiable for Planning & Zoning, but City Council seems more flexible when the right project comes along. Second, site context matters tremendously in Irving.
Projects near major employment centers and transportation corridors may justify higher densities in Council's eyes, even when P&Z pushes back. The developer's emphasis on proximity to DFW's Terminal F expansion and major employers resonated with Council members.
Architectural quality and rental rates factor into Irving officials' decisions. Both Council and P&Z engaged with the product type and projected rental rates, with Council favoring the Class A+ podium design despite its higher density. The premium rents ($2.25-$2.30/sf vs. $2.00/sf) appeared to influence their perspective.
Read the Full Analysis: 1/16/25 - 4/1/24 | Walnut Hill Mixed-use
Developer: Woodhaven, Robert Dye Phone: (469) 877-4165 Email: [email protected] LinkedIn
Owner: Realty Appreciation, LTD. Stewart Hoffman Email: [email protected]
Legal: Winkelmann and Associates, Inc., Michael D. Clark Phone: (214) 801-7216 Email: [email protected]
Staff Report: 2023-110-ZC/2024-87-CP
4/11/24 Project Plans: 2023-110-ZC/2024-87-CP Plan
1/16/25 Project Plans: 2023-110-ZC/2024-87-CP Plan
RICHARDSON | DISTRICT: 1
Richardson CC February 10, 2025
District: 1 | Central Richardson
279-Unit Multifamily | SWC of S Greenville Ave & E Polk St | Approved
District: 1 | Northeast Richardson
443-Unit Multifamily | 250 E Arapaho Rd | Approved
DISTRICT: 1
Polk Street Residences SWC of S Greenville Ave & E Polk St
Central Richardson | 3.02 Acres | 279 Units | Approved
Deal Overview:
Joint deal between Trammell Crow (High Street Residential, Joel Behrens LinkedIn) and the City of Richardson.
City owns 1.31 acres across 5 parcels plus ROW from alleys and McKinney Street.
Greenway Investment Company (Jerry Stool) owns remaining 1.71 acres across 6 parcels.
Public-private partnership leveraging city-owned land for downtown redevelopment.
The financial structure of this development relies heavily on a public-private partnership, with the City of Richardson contributing 1.31 acres of assembled land across five parcels plus right-of-way from existing alleys and McKinney Street. The private sector component includes Greenway's contribution of 1.71 acres spanning six parcels, creating the complete 3.02-acre development site.
City Council 2/10/25
MS/CE FBC: 3-story/45' → SD Plan: 4-story/54' | Approved
The Richardson City Council recently voted 5-2 to approve the Special Development Plan for the "Polk Street Residences," a contentious 279-unit multifamily development by Trammell Crow Company's High Street Residential division. The project, located on 3.06 acres at the southeast corner of East Polk Street and South Texas Street in downtown Richardson, required several zoning exceptions and generated significant community feedback during the February 10, 2025 meeting.
The development will transform what is currently ten separate properties, city right-of-way, and an abandoned alley into a four-story wrap-style apartment building with a five-level parking garage. The units will average 846 square feet, and the development will reach a density of 91 units per acre, well above the minimum requirement of 40 units per acre set by the Main Street/Central Expressway Form-Based Code adopted in 2016.
Joel Behrens, Managing Director at Trammell Crow who has been with the company for nearly 17 years, presented the project, emphasizing that they had held over 20 community meetings in the past five weeks to address concerns that arose during the January City Plan Commission meeting. "We think we've accomplished a lot," Behrens noted, pointing to their enhanced public open space along Polk Street (increased from 3,000 to 4,000 square feet), improved pedestrian connectivity with a mid-block passage from Polk to Kaufman Street, and the addition of 70 public parking spaces in the garage.
One of the most contentious points was the increased building height - 54 feet and four stories instead of the allowed 45 feet and three stories. Kevin Hickman from Trammell Crow explained that from the street level perspective, it would appear only 5 feet taller than allowed, with the additional height needed for the parking garage structure deeper in the site. The development also required exceptions for a 580-foot block length (versus the allowed 350 feet), reduced parking ratio (1.25 spaces per unit versus required 1.5), and a reduction in open space (12.1% versus the required 15% private or 8% public).
During the meeting, many residents from the Kaufman Street area voiced strong opposition. Robert Jordan Connelly, who lives at 126 East Kaufman directly in the project area, called it "like trying to stick a square peg into a triangle hole," expressing concerns about the infrastructure impacts and loss of neighborhood character. Carie Juettner, whose home at 114 East Kaufman directly faces the development, criticized the developers for not initially engaging with homeowners before the zoning meeting: "Trammell Crow did not reach out to a single homeowner on Kaufman Street prior to the zoning meeting."
Restaurant owner Megan Santonicola raised concerns about parking and construction impacts: "The removal of over 100 nearby parking spaces for this development will significantly diminish parking availability for my business and many others in the surrounding area." She also expressed concerns about construction disruptions, noting it "will bring mess that will surely wreak havoc on our patio and surrounding areas."
Not all community input was negative. David Harold, representing The Nest Wellness Village development nearby, supported the project, particularly appreciating "the developer's addition of 111 public parking spaces from the 20 surrounding parking spaces on the original plan." Jerry Harkins, who has owned Tavern on Main Street for 15 years, advocated for the development, saying, "For my business and other businesses on Main Street, unless this deal goes through, I think you're going to have a hard time attracting any better development."
During council deliberation, Councilmember Dan Barrios (District 3) spoke against the project, arguing that the "superblock" created by closing McKinney Street wouldn't serve Richardson's long-term interests:
‟30 years from now what is this going to become? The big block structure makes it economically not feasible for redevelopment because it's so much more expensive to redevelop.
Conversely, Council Member Ken Hutchenrider (At Large Place 5) supported the development, recalling the closure of Isabell's candy store:
‟I heard rumors they were shutting down and I asked them, 'Why are you shutting down?' You know what they told me? 'We don't have customers, plain and simple.'
He argued that adding residential density would provide the customer base downtown businesses need.
During the meeting, Behrens made one significant concession, agreeing to incorporate 3,000 square feet of "retail-ready" space at the corner of Polk and Texas Street. While initially resistant to include retail due to current market conditions, he acknowledged the community's desire for future retail possibilities:
‟We would commit to accommodate 3,000 square feet of ground floor retail-ready space... It would appear to be a storefront that could accommodate retail in the future to the extent there's a need."
Mayor Bob Dubey supported the project:
‟I think this is a catalyst type project that will spur on to bigger, better things and that vision we talk about. I read some things and people talked about quoting us - we want eclectic, we want multi-generational, we want to create walkable, pedestrian-friendly, and all those things. I think those are happening. I heard them talk about art. I heard them talk about trying to find ways as far as sculptures and things to make it unique and special. I think we need to give them a chance.
This is the third, maybe fourth company that's approached it and said we want to do something. I think you add our $5 million worth of green space on the DART Rail, I think you add the Nest to the South and you bring this - this is a really good start from my opinion. Is it ideal? Mr. Hutchenrider said it wasn't. I agree. Some others said it wasn't necessarily perfect, but it is the best option we have had to date. And people have asked what are we doing downtown, what are we doing in town, when's it going to happen? Well, this is a chance for it to happen in my opinion, so personally I'm going to vote for it."
The council ultimately approved the project 5-2, with Council Members Barrios and Shamsul voting against. The approval included a condition that the developer provide the promised 3,000 square feet of "retail-ready" space at the corner of Polk and Texas Street, with exemptions from residential design standards to allow for potential retail conversion in the future.
U/ Product
Product
279 residential units on 3.02 acres.
Density of 91 units per acre (exceeding minimum requirement of 40 units/acre).
Average unit size of 855 square feet.
70% one-bedroom units.
Four stories (54 feet) tall, requiring variance from three-story height limit.
Total of 105,000 GSF (78,000 SF wood frame construction, 27,000 SF garage).
U/ Infrastructure
Significant public infrastructure investment accompanies the development, centered on a complete reconstruction of Polk Street. This infrastructure package includes extensive streetscape improvements with 12-foot-wide amenity zones, 6-foot bike lanes, and comprehensive underground utility upgrades. The timing of these improvements will align with the project's two-year construction timeline, with the Developer and City coordinating the infrastructure work to minimize disruption.
Read the Full Analysis: 2/10/25 - 1/7/25 | Polk Street Residences
Developer: High Street Residential (Trammell Crow), Joel Behrens Phone: (214) 863-3308 Email: [email protected] LinkedIn
Owners: City of Richardson & Greenway Investment Company, Gerald (“Jerry”) Stool Email: [email protected], Todd Petty Email: [email protected]
Staff Report: ZF 24-31 SR
Project Plans: ZF 24-31 Plan
DISTRICT: 1
Legacy Arapaho 250 E Arapaho Rd
Northeast Richardson | 10.39 Acres | 443 Units | Approved
Deal Overview:
Location: South side of E. Arapaho Road and west of N. Grove Road in Richardson, TX.
Size: 10.39 acres.
Current site: Vacant 156,000 SF two-story office building (Richardson Commons).
Proposed: 443-unit market-rate multifamily development.
Density: 42.5 units per acre (meeting minimum requirement of 40 units/acre).
Legacy Partners, Brian McNally LinkedIn.
City Council 2/10/25
CA TOD & Innovation PD (Station Area) → SD Plan | Approved
The Richardson City Council approved the Legacy Arapaho project at 250 E. Arapaho Road. This is a significant multifamily development that will replace a vacant 156,000 sq. ft. office building originally built in 1985 with 443 residential units on a 10.39-acre site at the southwest corner of Arapaho and Grove.
The project is being developed by Legacy Partners, who focused on their experience in Richardson in their presentation. Their most recent project is Ovation at Galatyn Park, which is reportedly 85% leased.
The development involves significant variety in housing types - a feature that Council Member Dan Barrios specifically praised:
‟When I saw the outline into various types of housing you have here, I was excited, because at least since I've been on the council we really haven't seen that variety.
The mixed-use product includes five buildings: a 4-story multifamily building with 234 units at the corner, two 3-story buildings (one with 153 units and another with 44 units), and two 2-story townhome buildings along Grove Road.
The unit mix is 72% one-bedrooms, 26% two-bedrooms, and 2% three-bedrooms, with an average size of 850 sq. ft. All units will be for lease. Parking will be provided at 1.42 spaces per unit (632 total spaces) through a combination of a parking garage, tuck-under garages, attached garages, and surface parking.
The developers requested several modifications to the Collins/Arapaho TOD & Innovation District Form-Based Code requirements through a Special Development Plan:
Elimination of the north-south pedestrian connection and relocation of the east-west connection to the southern portion of the site to connect to a future trail
Maintaining existing streetscape with mature trees instead of rebuilding to new code requirements
Elimination of the 15-foot separation requirement for buildings over 250 feet in length (the building along Arapaho will be 456 feet long)
Modification of material requirements to only apply the 75% primary material standard to street-facing facades
The most contentious issue during the council discussion was the sidewalk width. The current sidewalks are approximately 4 feet wide, while the new code requires 5-8 feet.
‟The 5 ft requirement is not just to have another foot, there is a reason for that. If someone takes a wheelchair and other things, it's difficult for them to turn around on a busy street.
The developer argued that keeping the existing sidewalks would help preserve the mature trees along Arapaho and Grove Road. They also committed to making necessary ADA improvements and repairing trip hazards, but were concerned that full replacement could damage tree roots.
Another significant concern raised by Council Member Barrios was the need for a crosswalk on Grove Road. This came from discussions with the Highland Terrace neighborhood association. As Brian McNally from Legacy Partners stated:
‟They were concerned about potential traffic that's going south on Grove. Currently there's one crosswalk location at La Salle and Grove that's, I'd say, lightly marked.
The developer committed to working with the city on crosswalk improvements, which became a condition of approval.
The City Plan Commission had previously recommended approval by a 7-0 vote, and ultimately the City Council unanimously approved the zoning request and special development plan with the crosswalk condition.
Construction will involve the complete demolition of the existing office building, and the development is part of the city's economic strategy to redevelop older, less desirable office buildings with higher-density residential to support the Innovation District.
Read the Full Analysis: 2/10/25 - 1/7/25 | Legacy Arapaho
Developer: Legacy Partners, Brian McNally Phone: (650) 571-2250 Email: [email protected] LinkedIn
Owner: Thompson Oil, Suleman Bhimani Email: [email protected]
Staff Report: ZF 24-34 SR
Project Plans: ZF 24-34 Plan
Thank you for being a part of Ultraground.
How was this report? |
Reply