Property & Facilities Management

Straddling Denton and Dallas Counties on the north side of the DFW Metroplex, Lewisville, Texas started as a prairie town in the 1840s. With the arrival of the railroad in the 1880s, Lewisville became an established city, and has since grown into an outlying DFW suburb of more than 113,000 residents. As with many small towns across America, Lewisville’s downtown business district, Old Town, was bypassed with the construction of modern freeways. Many Old Town buildings became vacant and boarded over the decades as businesses moved to highway locations. Fortunately, Lewisville civic leaders in recent years have brought a new focus to revitalizing the original commercial core, moving City Hall back to Old Town, creating a Tax Increment Reinvestment Zone (TIRZ) to fund infrastructure and future public uses, and designating Old Town as an Opportunity Zone to encourage private sector investment. A key to the future vision of Old Town is new housing. With the support of local officials, the Dallas office of developer J Street Companies assembled five former industrial properties –including a lumberyard, a warehouse, a metal fabrication shop, and auto repair businesses– to create a large development parcel a few blocks south of City Hall. With the idea of creating new, modern apartments in an authentic walkable place, the project called The Mill Old Town was born. J Street’s vision of a true catalyst development would be a harbinger of thing to come, and a crucial piece in Old Town’s revitalization. When finished in January 2024, The Mill Old Town will offer 213 Class A, market-rate units in a four-story elevator building. The design of the building featuring brick, Stucco, Batten-board siding, and metal elements– pays homage to the industrial history of Old Town. To finance The Mill Old Town, J Street engaged the Fort Worth office of Colliers Mortgage to secure a FHA/HUD-insured 221(d)(4) first mortgage for $31.835 million, representing 85% of the development cost. The 221(d)(4) mortgage will fund construction and will convert after completion to a 40-year, fixed rate, non-recourse, assumable loan. Rate locks for both the construction and permanent loans were accomplished up-front at construction start. J Street CEO Shea Byers couldn’t be happier with the FHA-insured first mortgage financing, whose key benefit is rate-locking both the construction and permanent loans up-front. “By locking the permanent loan rate in the beginning, we don’t have any interest-rate exposure with take-out financing after construction. That’s a huge relief.”

In 2018, J Street, a visionary real estate company, recognized a significant opportunity in the growing town of Celina, Texas. Situated along Preston Rd and just a mile away from the charming Downtown Celina, J Street identified a 12-acre rectangular parcel that held immense potential for development. This case study delves into the decision-making process that led J Street to pioneer a 240-unit apartment project in this location. At the time of this opportunity, Celina was experiencing a first mover housing boom into what “used to be the country”. The primary reasons being thousands of new jobs coming to North Texas and the extension of the North Dallas Tollway towards eventually Oklahoma. Despite the modest commercial developments in the area, J Street's executives shared a strategic insight: owning real estate between Preston Rd and the Dallas North Tollway could yield promising financial returns if only for the land. However, this notion was bolstered by three key factors that ultimately motivated the company to embark on the groundbreaking apartment project. Affordable Housing Gap: One of the pivotal factors that steered J Street towards pioneering an apartment project was the glaring absence of affordable housing options in Celina. The town lacked new, purpose-built rental apartments, making it challenging for a diverse range of residents to find quality housing without straining their budgets. This gap presented a clear opportunity for J Street to address a pressing need within the community. Strategic Location: The parcel's strategic location between Preston Rd and the Dallas North Tollway amplified the attractiveness of the opportunity. J Street's executives were aware of the long-term value inherent in owning property within this corridor. The proximity to major transportation arteries, coupled with the projected northward expansion of the Tollway, pointed towards increased accessibility and connectivity, which are key drivers for real estate appreciation. Pioneering Advantage: Recognizing the lack of competition in the area, J Street saw a pioneering advantage in being the first to develop a sizable apartment project in Celina. This first-mover advantage allowed the company to establish itself as a significant player in the local real estate market and position itself for long-term growth. By filling the gap in affordable housing, J Street could effectively dictate rental rates, further enhancing its competitive edge. Despite the array of obstacles, J Street remained resolute in its belief in the project's viability. Leveraging an established and enduring relationship with a dedicated investor who aligned with J Street's mission and business plan proved instrumental. This investor's support not only validated J Street's vision but also provided the necessary financial backing to propel the project forward. As a result of their strategic decision-making and execution, J Street and Legacy Capital sourced a $33,500,000 FHA insured construction to permanent loan to develop the project. The project not only contributed to the growth and vibrancy of Celina's real estate landscape but also positioned itself as a trusted community partner with a pulse on emerging opportunities. One Preston Station not only provided housing solutions but also fostered economic growth by attracting new residents to the town. J Street's journey from identifying an untapped opportunity to pioneering a 240-unit apartment project in Celina exemplifies the power of strategic foresight and adaptability. This venture underscores the significance of recognizing and acting upon market gaps, solidifying J Street's reputation as a visionary player in the real estate industry.