Forest City Enterprises, Inc. has closed a strategic capital partnership with AIG Global Real Estate for the development of 3700M, a 381-unit apartment project in the West Village neighborhood of Dallas. Forest City and AIG will share ownership and fund the equity requirements for the project, which began construction in December 2012 and is expected to be completed in the third quarter of 2014.
“We are very pleased to partner with AIG on this great project,” said David J. LaRue , Forest City president and chief executive officer. “As we continue to see demand for new multifamily product in our core markets, we are teaming with equity partners, such as AIG, to invest with us in new projects. This is a key element of our strategy of building a strong, sustaining capital structure while continuing to take advantage of new opportunities in these markets.”
Construction financing for the project is being provided by Civitas Capital Management through the federal government’s EB-5 loan program. Project financing also includes a tax increment financing (TIF) award from the City of Dallas. “The overall financial structure behind this project reflects our ability to access multiple sources and work in partnership with the local community to stimulate economic activity and make mutually beneficial projects happen, while also enhancing returns,” LaRue added. “We’re grateful for the city’s involvement in helping to make investments like this possible.”
Located at 3700 McKinney Avenue at Blackburn Street, the project will include a 21-story tower as well as a five-story mid-rise component that will be topped with a landscaped amenities deck featuring a pool, cooking areas, covered seating and a water feature. The apartment project is designed to meet LEED (Leadership in Energy and Environmental Design) certification standards. Ground-level retail totaling 37,000 square feet will be owned by Cityplace Company.