Sovereign Properties is moving forward with development of the second phase of Dolce Twin Creeks, a 366-unit multifamily property in Allen, Texas, thanks to a $45.5 million senior loan from JLJ Capital and BridgeInvest and a loan commitment of up to $10 million from Cottonwood Communities Inc.
The $73 million project is located next to Dolce Twin Creeks, a 374-unit apartment community that was delivered by the developer in 2016 and placed 7th in Multi-Housing News’ Top 10 Dallas Completions of 2017 list.
Phase Two is being built on nearly 11 acres at 729 Junction Drive and will be called Sovereign at Twin Creeks. It will include a fitness center, resort-style pool and business lounge. A 15,000-square-foot medical office building is scheduled to be built next to the community that is about 30 minutes drive north of downtown Dallas. Sovereign Properties plans to build the property in a hybrid mid-rise garden development style with two-story buildings and enclosed corridors. Other amenities will include outdoor grilling stations and cabana, and a large dog park.
Davis Brothers Construction is the general contractor for the project, which is slated for completion in late summer 2020.
Jonathan Lewis, founder & CEO of JLJ Capital, said in a prepared statement the firm—a leading provider of creative alternative financing solutions for major real estate projects—has worked with Sovereign in the past. Lewis noted the firm is also financing several other projects in Texas, including a commercial warehouse, land development and construction projects in Dallas, Austin and San Antonio.
Allen, an upscale neighborhood in the Dallas-Fort Worth metroplex, has more than 100,000 residents and a median income of approximately $110,000. The region has seen some of the strongest in-migration and employment growth in the U.S., adding just over 100,000 jobs last year, second only to the New York City area. In early 2019, the City of Allen opened a $91 million convention center. Collin College is building a new campus in Allen that will serve up to 7,000 students when it opens in 2020.
Led by Principal Russ Krivor, Sovereign, has assembled more than $300 million in equity under management, resulting in approximately 5,000 completed apartments to date. The firm focuses on high-growth Sunbelt markets with strong population growth and job gain numbers, along with top-rated school districts and high median incomes.