DALLAS, TX - Equity Residential (NYSE: EQR), an S&P 500 company focused on the acquisition, development, and management of residential rental properties located in and around dynamic cities and Toll Brothers, Inc. (NYSE: TOL), the nation’s leading builder of luxury homes, through its Toll Brothers Apartment Living (TBAL) rental division, announced plans to develop three new luxury rental communities totaling 1,053 units in the Dallas/Ft. Worth metropolitan area.
These projects represent the first three joint ventures under the strategic relationship that Toll Brothers and Equity Residential established in 2021. Through the partnership, the parties initially intend to focus on selectively acquiring and developing sites for apartment rental communities in specific metro markets, including Dallas/Ft. 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.
The three new communities to be developed by Toll Brothers and Equity Residential are all located in metro Dallas/Ft. Worth. The Settler is a four story, 362-unit multifamily rental community in Ft. Worth being financed through a construction loan facility from U.S. Bank. Remy is a five story, 357-unit multifamily rental community in Frisco Square being financed through a construction loan facility from Santander Bank, N.A. Lyle is a five story, 334-unit multifamily rental community in Dallas also being financed through a construction loan facility from Santander Bank, N.A. The loans were arranged by Toll Brothers’ in-house Finance Department.
“Dallas/Ft. 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, Equity Residential’s President and CEO. “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.”
Douglas C. Yearley, Jr., Chairman and Chief Executive Officer of Toll Brothers, Inc., stated: "We are very pleased with the progress to-date of our strategic partnership with Equity Residential. In addition to these three projects we are developing together in metro Dallas, Equity Residential recently acquired three other communities totaling 909 units that TBAL recently developed with other partners in the Dallas and Atlanta markets. Going forward, with top quality 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. The synergies from our two great brands, Equity Residential's deep market knowledge and long experience in the management of high-quality rental communities, Toll Brothers' high-end design and development capabilities and the financial strength of each of our organizations is proving a formidable combination."
Charles Elliott, President of Toll Brothers Apartment Living, stated: “We’re thrilled to announce our first three Class A residential development projects with Equity Residential in Texas, and we look forward to continuing our successful partnership. We’re building these communities in some of the most vibrant and desirable neighborhoods of the Dallas/Ft. Worth market, offering the perfect blend of lifestyle and luxury in the middle of it all.”
The Settler will consist of 362 apartment units and a 543-space parking garage with bicycle storage and a sky lounge overlooking downtown Ft. Worth. Located at 204 Athenia Drive in the heart of Ft. Worth’s River District, the site is in close proximity to Ft. Worth’s Central Business District, Cultural, and Medical districts, and the historic Ft. Worth Stock Yards. The Settler is just steps away from the scenic Trinity River’s hike and bike trails, various museums, The Ft. Worth Botanical Garden, the Ft. Worth Zoo, and just north of PGA Tour host Colonial Country Club.
Remy will consist of 357 apartment units and features a 545-space parking garage. The project is located in the vibrant Frisco Town Center in the Dallas suburb of Frisco at the intersection of Gordon and Church Streets. Frisco is one of the most affluent and desirable suburbs of Dallas. The site is located along Frisco’s North Platinum Corridor, a Development Center on the Dallas North Tollway. Residents will benefit from walkability to an abundance of amenities, including restaurants, retail, 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.
Lyle will consist of 334 apartment units and features a 475-space parking garage. Lyle is located at 17727 Addison Road, ideally positioned at the intersection of Trinity Mills and Addison Rd., 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, City Line, Hall Park, and The Star, which is located within the $5 Billion Mile.
Each community will feature high-end luxury finishes and residents will enjoy a best-in-class amenity package, including a resort-style pool, a pet spa, co-working spaces, state-of-the-art fitness centers, and much more.