Aberg Property Co. (APC) and Corsair Ventures (Corsair), both Dallas based operations, announced construction of a 140-unit Class A apartment complex located at Race Street and Oakhurst Scenic Drive in the River East District just east of downtown Fort Worth Oct. 10.
The Presidio at River East is a four-building complex that will be located on Scenic Bluff overlooking the new River East Park and downtown Fort Worth, the companies said in a news release.
In April, the Fort Worth City Council authorized a five-year tax abatement for the property, which falls within the Six Points Neighborhood Empowerment Zone.
APC and Corsair have partnered with US Freedom Capital on the development, and expects the project build out to be about 14 months with the projected opening in February 2020, the news release said.
Other team members include Fort Worth-based Dunaway Engineers, BGO Architects, Crimson Builders and Magnolia Property Co. Guaranty Bank and Trust provided financing for the project.
“The Presidio at River East has undoubtedly the best location in east Fort Worth and we have carefully planned the timing of this project to take advantage of the new Race Street improvements currently underway, as well as the new Riverside Park,” said Peter Aberg of Aberg Property. “In addition, having the I-35W improvements completed next year will help make this area more accessible to residents.”
David Gunderson, chief investment officer of US Freedom Capital, said the company has “great confidence in this fast-growing submarket located in the urban core of Fort Worth.”
Over the last two years the River East area – also known as Six Points Urban Village – has experienced significant new development from both the private and public sector, the companies said in the release.
Criterion Development opened The Scenic at River East last year and will open a new 180-apartment project on Race Street early next year that includes ground floor retail. Plans are also in the works for more residential development in the River East area later in the year. “Over the next 18 months the River East area will be one of the most active submarket, for residents and new business,” said Aberg.
The City of Fort Worth is currently improving Race Street and several new businesses are expected to come on line later in 2019. Last year, Top Golf opened near the River East area just east of downtown on 4th Street.
The presentation to the Council said that the expected investment in the property was estimated at $18.4 million to construct the apartment complex.
“Neighborhood Empowerment Zones are identified throughout the central city, many associated with Urban Villages,” District 9 Council Member Ann Zadeh said at the April meeting. “The purpose of which is to promote the rehabilitation of properties, the building of affordable housing and/or economic development and expansion services.”
A multi-family project located in a NEZ must either set aside a percentage of the units for affordable housing as defined by the U.S. Department of Housing and Urban Development (HUD) or, if permitted by the City Council, pay the Fort Worth Housing Finance Corp. $200 annually for each rental residential unit on the property.
The information at the April meeting said the developer had opted to pay the annual fee in lieu of setting aside the affordable units.
Municipal property tax abatements, fee waivers and release of city liens are available to property owners who build or rehabilitate property within a NEZ. These incentives are designed to promote affordable housing, economic development and expanded services.
Includes information from Business Press archives
– FWBP Staff