
Equity Residential and Toll Brothers Apartment Living (TBAL) has announced plans to develop three new luxury rental communities totaling 1,053 units in the Dallas-Fort Worth metropolitan area. The Settler will be a four-story, 362-unit rental community in Fort Worth; Remy, a five-story, 357-unit rental community in Frisco Square; and Lyle, a five-story, 334-unit community in Dallas. Loans for the three properties were arranged by Toll Brothers’ in-house finance department.
“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,” says Mark J. Parrell, Equity Residential 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.”
Near Fort Worth’s central business, cultural, and medical districts, the Settler’s 362 units will have access to a 543-space parking garage with bicycle storage and a sky lounge. The Settler is just steps away from the scenic Trinity River’s hike and bike trails, Fort Worth Botanical Garden, and Fort Worth Zoo, and is north of PGA Tour host Colonial Country Club. Lyle’s residents will have easy access to several employment hubs, including the Galleria Dallas, Legacy Business Park, and Granite Business Park. The 334 units will feature a 475-space parking garage.
In Frisco Square, Remy will consist of 357 apartment units and a 545-space parking garage. Residents will benefit from walkability to an abundance of amenities, including restaurants, retail, a Cinemark movie theater, and MLS franchise FC Dallas’ soccer stadium. Remy is also adjacent to Frisco’s City Hall and Medical City Frisco hospital.
All three communities will include high-end luxury finishes and a best-in-class amenity package, featuring resort-style pools, pet spas, co-working spaces, state-of-the-art fitness centers, and more. Charles Elliott, president of TBAL, states: “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-Fort Worth market, offering the perfect blend of lifestyle and luxury in the middle of it all.”
The Settler, Remy, and Lyle are representative of the first three joint ventures under a strategic partnership that Toll Brothers and Equity Residential established in 2021. Initially, the parties plan to focus on selectively acquiring and developing sites for apartment rental communities in specific metro markets, including Dallas-Fort Worth. 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.
Once each project is completed, Equity Residential will have the option to acquire the properties 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.
“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,” adds Douglas C. Yearley Jr., chairman and CEO of Toll Brothers.
“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."