Toll Brothers, Equity Residential Will Partner on Three Dallas Multifamily Communities

A partnership between two multifamily developers, Equity Residential and Toll Brothers will develop three multifamily projects totaling 1,053 units in the Dallas-Fort Worth metroplex.

The Settler will be a 362-unit community in Fort Worth’s River District; Remy, located within Frisco Town Square, will total 357 units; and Lyle will comprise 334 apartments that will be constructed on the north side of Dallas. U.S. Bank is the construction lender on The Settler, and Santander Bank provided construction financing for Remy and Lyle. Construction timelines were not disclosed.

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.