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Dallas | 167-Unit Acquisition/Rehab
8/28/24 | Royal Crest Apartments
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CC August 28, 2024
District: 4 | Cedar Crest
167-Unit Acq/Rehab Multifamily | 3558 Wilhurt Ave | Approved
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DISTRICT: 4
Royal Crest Apartments 3558 Wilhurt Ave
Cedar Crest | 8.88 Acres | 167 Units | Approved
The Royal Crest Apartments deal project is a proposed redevelopment of an existing 167-unit multifamily complex located at 3558 Wilhurt Avenue in Dallas, Texas. New York-based Fairstead is seeking 4% Non-Competitive Low Income Housing Tax Credits from the Texas Department of Housing and Community Affairs (TDHCA) for this deal.
The plan involves a substantial rehabilitation of the property, which was originally developed in 1969. The renovation will include upgrades to unit interiors, building systems, and common areas. The project aims to preserve affordable housing in the area while improving living conditions for residents.
Council Member Mendelsohn requested more information about how crime would be addressed. She specifically asked about "gates at the entrance," "fencing," and "flock cameras." Mendelsohn also inquired about lighting improvements and how these security measures would be implemented.
‟If you could go through any other things, perhaps lighting, that you're gonna do and then how we could be assured those things will happen.
After receiving a detailed response from the applicant about security measures such as fencing, gate systems with controlled single point of entry, cameras, off-hour security patrols, and CPTED (Crime Prevention Through Environmental Design) principles being applied, Mendelsohn responded positively, saying, "Great, well that was a really great answer."
The total development cost is estimated at approximately $55 million, which includes the acquisition price for the land and about $21 million in construction costs. The funding structure includes a mix of tax credit equity, conventional loans, and a $10 million grant from the U.S. Department of Housing and Urban Development.
The financial projections for the Royal Crest Apartments have changed significantly since its original pro forma dated January 18, 2024. Separated by about seven months, the models show some notable differences in their financial figures, offering insight into how the project's financial structure evolved as it moved through the city approval process.
Financials | 1/18/24 | 8/28/24 |
|---|---|---|
Total Financing | $46,760,090 | $55,029,976 |
Land Acquisition | $20,000,000 | $20,000,000 |
Hard Construction Costs | $14,418,965 | $21,071,680 |
Permanent Loan | $25,785,000 | $20,411,000 |
Financing Fees | $3,211,636 | $1,351,176 |
Housing Tax Credits Eq | $12,090,750 | $21,447,097 |
Deferred Developer Fee | $3,069,382 | $3,171,879 |
Developer Fees | $5,342,862 | $6,447,185 |
Other Notable Terms | N/A | $10M HUD GRRP Leading Edge grant |
The most notable change is the inclusion of a $10 million HUD GRRP Leading Edge grant, which wasn't present in the original pro forma. This substantial injection of funds has likely allowed the developers to recalibrate their entire financial structure.
The increase in total funding sources from $42.7 million to $55 million indicates a more ambitious scope for the project. This is reflected in the higher construction budget ($21 million vs. $14.4 million), suggesting more extensive renovations or improvements than initially planned.
The shift in funding composition - with increased tax credit equity and decreased conventional loan amount - points to a strategy that leverages more public funding and less debt.
The higher developer fee ($6.4 million vs. $5.3 million) might be a result of the increased project scope and complexity, or it could reflect adjustments made to accommodate the new funding structure.
Housing & Homelessness Solutions Committee 8/26/24
Briefing
Additional Insights from the Housing Committee Meeting:
Timeline Discrepancy: The committee discussion revealed a discrepancy between the completion date on the briefing sheet (November 2025) and the move-in dates communicated by St. Jude (January-March 2026).
CPTED Principles: The applicant mentioned the application of Crime Prevention Through Environmental Design (CPTED) principles, which wasn't explicitly stated in the City Council summary.
Ongoing Monitoring: The discussion touched on the importance of ensuring that promised security measures are actually implemented, suggesting a need for ongoing monitoring of the project beyond its initial approval.
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Developer: Fairstead, Allan Izzo Phone: (716) 353-0611 Email: [email protected] LinkedIn, Robert Barnard Phone: (703) 795-4138 Email: [email protected] LinkedIn
Owner: AmeriSouth Realty, Ruel Hamilton Phone: (214) 750-1709 Email: [email protected] LinkedIn
Case Report: Royal Crest Apartments SR
Project Plans: Royal Crest Apartments Plan
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