CityParc At Keller

  • Year Built: 2007
  • Total Units: 312
  • Class: A Development
  • Cost: $26.9 Million

Opportunity:

CityParc at Keller is a Class A ground-up development located in a highly desirable DFW Metroplex suburb. The principals of Lloyd Jones Capital (“LJC”) identified strong demand driving fundamentals in the underlying market including expanding major employers, top rated school system, proximity to excellent healthcare and ease of access to major DFW highways. All indications pointed to 20%+ returns on the project with Texas leading the nation in economic growth and DFW serving as the financial and professional hub of the Southwest.

Execution:

An institutional quality European equity partner was brought into the deal, allowing the development and construction to move quickly. The project was completed below estimated costs at approximately $86,500 per unit. Just as construction was completed in late 2007 and the project entered lease-up, major headwinds and negative signals began to emerge within the national economy. Despite these challenges, LJC remained confident that the fundamentals identified in the market would weather the storm. Superior marketing and leasing efforts and micro expense control by Finlay Management led the property through the economic downturn and the property emerged as a top performer within the market.

Result:

This property serves as a case study for managing downside risk and our tenacity in the face of economic challenges.  Despite entering lease-up in the heart of the economic recession, the project exceeded the hurdle rate and delivered 2x multiple to investors upon exit in 2014.