Toll Brothers JV Breaks Ground on 3 Texas Communities
In a $1.9 billion partnership with Equity Residential, the firm will develop more than 1,000 apartments in Dallas-Fort Worth.
Equity Residential and joint venture partner Toll Brothers Apartment Living, the rental subsidiary of Toll Brothers, have broken ground on three luxury multifamily communities in the Dallas-Fort Worth area. A total 1,053 homes will be developed across three communities: Lyle, Remy and The Settler.
Toll Brothers and Equity Residential first established their $1.9 billion partnership in 2021. With future developments planned in Houston and Austin, the groundbreaking of the three communities marks the joint venture’s entry into the north Texas market.
Santander Bank, N.A., is financing a construction loan for both Lyle and Remy. The Settler is being financed through a U.S. Bank loan.
On Oct. 27, a groundbreaking ceremony for all of the properties was conducted at the site of Lyle in Dallas.
Location and amenities
Each community will include a pool, co-working spaces and a fitness center.
Lyle is a 334-unit property in Dallas, located at the intersection of Trinity Mills and Addison Road. The five-story building is set to open in spring 2024. Situated next to the Dallas North Tollway, residents will have access to employment centers including Legacy Business Park, Granite Business Park, Las Colinas, Hall Park, The Star, CityLine and Galleria Dallas.
Remy will feature 357 apartments in a five-story property in Dallas’ Frisco suburb. Located in the Frisco Town Center, the community is in proximity to dining, entertainment and retail options. Situated at the intersection of Gordon and Church Streets on Frisco’s North Platinum Corridor, the surrounding area has a free public library, a movie theater and the MLS franchise FC Dallas’ soccer stadium. The Medical City Frisco hospital is nearby, as is Frisco City Hall. Remy is set to open in fall 2023.
The Settler, a four-story property, will include 362 homes. Located in Fort Worth, residents are close to hiking trails, biking trails and museums. The Fort Worth Botanical Garden, Fort Worth Zoo and PGA Tour Host Colonial Country Club are in proximity to the site. Situated in Fort Worth’s River District, The Settler is near the city’s Cultural and Medical districts as well as the central business district. The community is anticipated to open in early 2024.
A look ahead for the partnership
Apartment rental communities that are acquired and developed through the partnership are in areas where each company has a growing presence. Potential metros for future communities include San Diego, Orange County, Seattle, Boston, Denver and Atlanta, as well as further developments in Dallas and Fort Worth.
For each project the joint venture acquires and develops, Equity Residential is set to invest 75 percent equity while Toll Brothers invests the remaining 25 percent. Upon stabilization, Equity Residential can fully purchase the asset. Assuming each project is also financed with 60 percent leverage, the companies have a combined target initial minimum co-investment of approximately $750 million in equity.