Frisco Square

The Opportunity: Purchased a 70% partnership interest in a 48-acre, 5-building office/retail/multifamily/land/mixed use development located in Frisco, Texas, approximately 30 miles north of the Dallas CBD for approximately $48 million over a three year period.

Result: After seven years of ownership dominated by one of the worst real estate cycles in recorded history, the development has experienced approximately 75% growth in NOI; four parcels of land totaling approximately 15 acres have been sold for an office/retail building, a 275-unit multifamily project, a medical office/hospital project; and a 12-screen Cinemark theater. Occupancy rates have risen to an average of 95% across all asset types.

Investment Summary

Asset Type: Mixed-use Development – Office, Retail, Multifamily, Land
Asset Size: Office – 103,122 rsf; Retail – 110,395 rsf; Multifamily (14 units); Land – Approximately 48 acres
Years of Construction: 2002–2015
Acquired: 70% JV interest in August 2007; 100% ownership in December 2012

Property Highlights

• Increased NOI from $2.2 million to $3.8 million
• Raised and have consistently maintained occupancy levels to 96% in office, 92% in retail and 98% in multifamily.
• Developed 12-screen, state-of-the-art Cinemark theater in 2010
• Sold 5.24-acre site to developer for hospital/medical office building for the highest price to date of any tract along the Dallas North Tollway in Frisco
• Entered JV agreement as 90% equity partner with local developer to construct 275 Class A apartment homes, which are currently commanding top-of-market rates in Frisco