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Dallas | 426-Unit Multifamily PFC
10/22/24 | The Park at Northpoint
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CC June 12, 2024
District: 6
426-Unit Multifamily PFC | 9999 W Technology Blvd | Approved
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DISTRICT: 6
The Park at Northpoint 9999 W Technology Blvd
Love Field | 15 Acres | 426 Units | Approved
DPFC 10/22/24
Demolition Update
The demolition for LDG’s 426-unit PFC at 9999 W Technology Blvd has been completed, as reported by Jake Brown of LDG Development.
Building is "totally down" with remaining debris being removed.
Dump trucks were actively clearing the site.
Site currently maintains 24/7 security and fencing.
Timeline
Closing process expected to begin early November 2024.
Target closing date: Early February 2025.
Only remaining item for building permit is recording of public easements.
The board discussed ongoing security needs for the vacant site, with a decision to:
Maintain current 24/7 security until next board meeting.
Review security requirements at November meeting.
Consider potential transition to different security arrangements (like video monitoring).
The tone of the discussion was positive, with the DPFC board president specifically commending Brown for his "tenderness" and "graciousness" in providing regular monthly updates in person on the demolition process, acknowledging the high public interest in this project.
This deal represents a major investment in District 6, with previous approvals including a 75-year ground lease structure and $10M in CDBG funds for land acquisition. Recent project modifications have streamlined it from a two-phase 615-unit development to a single-phase 426-unit project with deeper affordability commitments.
The City of Dallas deployed $10M in CDBG funds to acquire the land at 9999 W Technology Blvd through DPFC, anchoring the $121.9M mixed-income deal.
The financing stack leverages the public investment to secure a $69M mortgage loan and $42.9M in developer/investor equity. The deal structure includes a $250,000 upfront PFC fee and an initial $425,000 annual ground lease payment that escalates 3% annually. DPFC participates in value appreciation through a 15% share of first sale proceeds and 2% of subsequent sales, projecting $5.7M in proceeds over the first 15 years and $102.9M in total revenues over the 75-year ground lease term. The project's public benefit includes an estimated $147M in workforce housing rental savings while maintaining long-term public ownership of the land. This creative financing structure enables 51% affordability (217 units) with a mix of 41% at 80% AMI, 5% at 60% AMI, and 5% at 50% AMI.
What it is
PFC + $10 Million in Community Development Block Grant (CDBG) funds
The Park at Northpoint PFC is a $121.9 million mixed-income housing development in Dallas that will turn a 15-acre site with a vacant office building into affordable housing. The project will be 426 units with 186 one-bedrooms, 198 two-bedrooms, and 42 three-bedroom apartments. 51% of the units will be reserved for residents earning between 50-80% of the Area Median Income (AMI). The development is funded by a $10 million Community Development Block Grant (CDBG) and other sources. The Dallas Public Facility Corporation (DPFC) will own the property and lease it to the developer for 75 years.
City Council 6/12/24
DPFC Acq | Approved
Why it’s here
The project is being reviewed again because the developer requested changes due to increased costs and loan rates. The revised proposal consists of a single phase of 426 units, reduced from the original plan, and a change to 3-story buildings. To gain City approval, the developer has agreed to additional considerations.
Revised from 2 phases & 615 units to 1 phase & 426 units.
Deeper affordability - 5% of units at 50% AMI.
Extended affordability period from 20 to 30 years for $10M CDBG funds.
Enhanced resident services and amenities.
The project required City Council approval for DPFC participation and property tax exemption.
Reactions and Implications
Council Member Omar Narvaez advocated for the project, emphasizing the critical need for affordable and workforce housing in Northwest Dallas. Narvaez also highlighted the urgency of moving forward amidst ownership uncertainties with the developer stuck in limbo.
‟District 6, we're always welcoming more affordable housing, workforce housing, things of that nature, and it's something we need to do. This is really gonna help this area out to start getting that mixture of businesses with housing.
On the other hand, Council Member Cara Mendelsohn raised concerns about the property's valuation and the substantial decrease from the previous year. Mendelsohn questioned the financial details and the City's valuation including the existing building, which is planned to be demolished.
‟I'm seeing that it's more than $5,000,000 dollars reduced, does that sound accurate? And you're using the value that includes the building, but the building is gonna be scrapped.
The development will forego $178.2 million in City property taxes over 75 years. In exchange, The Park at Northpoint will provide much-needed affordable and workforce housing, with an estimated $147 million in rent savings for residents over 75 years. The project is projected to generate $102.9 million in revenue for the DPFC to fund future affordable housing initiatives.
Developer: LDG Development, Jake Brown Phone: (502) 638-0534 Phone: (404) 301-4835 LinkedIn
Case Report: The Park at Northpoint Details
Case Report: The Park at Northpoint Resolution
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