Dive Brief:
- Chicago-based multifamily owner and operator Equity Residential and Toll Brothers Apartment Living, the rental division of Fort Washington, Pennsylvania-based home builder Toll Brothers, have announced the first three multifamily projects in their joint development venture, which will add 1,053 units in the Dallas/Fort Worth metropolitan area.
- The new developments include The Settler, a 362-unit property in Fort Worth; Remy, a 357-unit property in Frisco, Texas; and Lyle, a 334-unit property in Dallas.
- In addition to these three projects, Equity also recently acquired three communities totaling 909 units that Toll recently developed in the Dallas and Atlanta markets, according to Douglas C. Yearley, Jr., chairman and CEO of Toll Brothers.
Dive Insight:
Under the terms of their partnership, established in 2021, Equity Residential will invest 75% of the equity for each co-developed project, while Toll Brothers will invest the remaining 25%. The parties have targeted a minimum co-investment of approximately $750 million in combined equity, or almost $1.9 billion capacity, assuming 60% leverage. Equity will have the option to acquire each property once it is stabilized.
“Going forward, with…partners such as Equity Residential co-investing with us at initial site acquisition, we expect to increase TBAL’s capital efficiency and return potential by allowing us to develop more apartments with less capital and providing reliable exit opportunities,” Yearley said in a news release on the announcement.
All three communities are set to offer high-end unit finishes, as well as resort-style pools, pet spas, co-working spaces, fitness centers and parking garages. The Settler will include a sky lounge overlooking the city of Fort Worth.
“Dallas/Fort Worth is a dynamic market with a growing population of the affluent renter demographic that we are interested in capturing. We are expanding our presence in the market and believe that these properties will make excellent additions to our existing portfolio there,” said Mark J. Parrell, president and CEO of Equity Residential
