A mixed-use development project planned in Keller will include 60,000 square feet of office, retail, and restaurant space, 57 single-family patio homes, and 475 multi-family units
Irving-based Realty Capital Management (RCM) on April 24 announced it has purchased a 38-acre mixed-use land investment in Keller, despite frozen capital markets resulting from the COVID-19 crisis.
Realty Capital Management had been negotiating with previous landowner, Hanover Property Company, to purchase the 38-acre tract located at the intersection of Mt. Gilead and Highway 377 since 2016. The purchase was contingent on the rezoning of the property from commercial to mixed-use planned development. After a public hearing earlier this year that lasted five hours, the Keller City Council approved the zoning four votes to three, making it the first multi-family entitlement approved in more than a decade.
RCM secured a loan from Texas Bank Financial and partnered with Dallas-based Realty Capital Partners (RCP) to finance the acquisition of the land. “We have definitely encountered some obstacles in closing this deal due to the COVID-19 crisis,” said Jimmy Archie, managing partner with RCM. “Our original equity partner backed out of the deal a week prior to closing due to fears surrounding the uncertainty of the economy. We were forced to quickly pivot and find a new equity source. Realty Capital Partners seized the opportunity and was able to secure commitments from their investors in less than twenty-four hours.”
“No doubt these are very difficult times, but there are still great real estate investment opportunities to be found. This land acquisition, with its rare multi-family zoning, is one of those opportunities,” said Blake Lugash, president of Realty Capital Partners. “This is evidence that for those great deals RCP can always come through with needed capital, and we are proud that we were able to step-in on short notice to help Realty Capital Management complete this transaction.”
“We are grateful to have such motivated partners that pursed the deal despite the COVID-19 crisis that has put a lot of deals on hold,” said Archie. “The City of Keller’s continued support and excitement, Texas Bank’s confidence in the deal, Hanover’s willingness to extend our closing date, and Realty Capital Partners’ ability to swiftly structure an agreement and secure capital, are all a testament to the project’s incredible potential despite the current environment.”
The mixed-use development will be called Center Stage.
“The Center Stage plan generated a lot of excitement among Keller residents, since a key component of the development is an entertainment space that incorporates live music in a natural amphitheater-like setting, with restaurant patios surrounding the area,” said AJ Glass, development partner with RCM. “Residents of Keller often commute to neighboring cities for diverse dining experiences and Center Stage will now give residents the ability to dine close to home in a vibrant mixed-use community.”
Center Stage is located in close proximity to numerous Fortune 500 corporate campuses. Charles Schwab, who recently acquired TD Ameritrade, is currently expanding its campus two miles north of the site to accommodate approximately 7,000 employees. Nearby, corporate campuses such as Fidelity and Sabre Holdings office more than 6,500 employees.
“The site’s proximity to corporate campuses like Charles Schwab, Deloitte, and Fidelity make it ideal for a mixed-use development,” said Glass. “With thousands of corporate employees working just minutes away, and many more on the way, we are confident a high-end mixed-use development will succeed in Keller’s 377 corridor.”
Realty Capital Management is the master-developer of the 160-acre Lakeside DFW mixed-use project in Flower Mound.
The purchaser was represented by Mark Boone with Realty Capital Management.