DALLAS, TX – Toll Brothers Apartment Living, the rental subsidiary of Toll Brothers, the nation leading builder of luxury homes, and Equity Residential an S&P 500 company focused on the acquisition, development, and management of residential rental properties located in and around dynamic cities, celebrated the groundbreaking of three new luxury rental communities totaling 1,053 units in the Dallas-Fort Worth metropolitan area.
Lyle, Remy, and The Settler represent the first three joint ventures in North Texas under the strategic relationship that Toll Brothers and Equity Residential established in 2021. The three communities join the continued expansion of Toll Brothers Apartment Living in Texas, with future communities in the state planned for Austin and Houston.
Hosted at the construction site of Lyle in Dallas, the October 27 groundbreaking celebration was attended by senior executives from Toll Brothers Apartment Living and Equity Residential, and members of the media.
We are excited to break ground on our first three Class A residential development projects in Texas as part of our new partnership with Equity Residential. Through our continued successful partnership, we look forward to providing thoughtfully designed and uniquely elevated apartment homes, said Charles Elliott, President of Toll Brothers Apartment Living. These communities are located in some of the most vibrant and desirable neighborhoods of the Dallas-Fort Worth market, offering the perfect blend of lifestyle and luxury with everything a resident would need and want right outside their doorstep.
The three new communities currently under construction in North Texas include:
Lyle, a five-story, 334-unit multifamily rental community in Dallas. Located at the intersection of Trinity Mills and Addison Road, and adjacent to the Dallas North Tollway, the site offers great access to several employment hubs including the Galleria Dallas, Legacy Business Park, Granite Business Park, Las Colinas, CityLine, Hall Park, and The Star, which is located within the $5 Billion Mile. The project is being financed through a construction loan facility from Santander Bank, N.A. Lyle broke ground in August 2022 and is anticipated to open in spring 2024.
Remy, a five-story, 357-unit multifamily rental community in the vibrant Frisco Town Center in the Dallas suburb of Frisco. The site is located at the intersection of Gordon and Church Streets and along Frisco s North Platinum Corridor, a Development Center on the Dallas North Tollway. Residents will benefit from walkability to an abundance of restaurants, retail, and entertainment options, including a Cinemark movie theater, a free public library, and MLS franchise FC Dallas soccer stadium. It is also located adjacent to Frisco s City Hall and Medical City Frisco hospital. The project is being financed through a construction loan facility from Santander Bank, N.A. Remy broke ground in February 2022 and is anticipated to open in Fall 2023.
The Settler, a four-story, 362-unit multifamily rental community in Fort Worth. Located in the heart of Fort Worth s River District, the site is in proximity to Fort Worth s Central Business District, Cultural, and Medical districts, and the historic Fort Worth Stock Yards. With a sky lounge overlooking downtown Fort Worth, the community is surrounded by Trinity River s scenic hiking and biking trails, various museums, The Fort Worth Botanical Garden, the Fort Worth Zoo, and just north of PGA Tour Host Colonial Country Club. The project is being financed through a construction loan facility from U.S. Bank. The Settler broke ground in June 2022 and is anticipated to open in early 2024.
All three communities will feature high-end luxury finishes and residents will enjoy best-in-class amenity packages, including resort-style pools, co-working spaces, state-of-the-art fitness centers, and more.
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 Benjamin Stoll, Equity Residential s Senior Vice President of Development. We are delighted to be partnering with the highly capable team at Toll Brothers and feel that these developments are a terrific start to a strategic partnership that will be very beneficial for both Equity Residential and Toll Brothers.
Through the partnership between Toll Brothers and Equity Residential, the parties initially intend to focus on selectively acquiring and developing sites for apartment rental communities in specific metro markets, including Dallas-Fort Worth, where both parties have a significant or growing presence. Under the partnership, Equity Residential has committed to invest 75% of the equity for each selected project and Toll Brothers will invest 25%. It is expected that each project will also be financed with approximately 60% leverage. Equity Residential will have the option to acquire each property upon stabilization. The parties have targeted an initial minimum co-investment of approximately $750 million in combined equity, or nearly $1.9 billion capacity, assuming 60% leverage.
These joint venture projects join a growing portfolio of Toll Brothers Apartment Living apartment communities across North Texas, including Aster, a 22-story, 270-unit luxury high-rise in Dallas, and Ferro, a four-story, 383-unit luxury apartment community in Plano.