Carey Levy, president of the Irvine, CA-based Passco, says the third phase at 5750 Curtis Clark Dr. fulfills many purposes, not the least of which is providing a good exit strategy for Seneca Investments. Dallas-based Seneca developed the initial phases in 2004 and 2005 with other partners.

"The strategy is to exit all phases when this is leased up," Levy tells GlobeSt.com. "Our phase has the lift and will hopefully enhance the value, which will make it a good candidate for an institutional buy." Completion is ticketed for mid-2009.

The phase will provide much-needed one-bedroom units and studios to the market. "The cost-per-sf basis is higher, but individuals will be getting what they need, whether they're in the military or college," Levy says. "There are a lot of people who are there for only a year or two, who don't need one- and two-bedroom units."

The third phase will add 36 studios, 36 one-bedroom and 48 two-bedroom units. Stoneleigh's entire mix ranges from 630 sf to 1,030 sf, with rents of $695 to $935. The occupancy for the first two phases is 92%.

Stillwater National Bank of Stillwater, OK provided a $7.6-million construction loan with a two-year term and interest rate of Libor plus 2.25% at an 80% loan-to-value ratio. WSI Architects Inc. of Dallas designed the third phase. KWA Construction, also from Dallas, is the general contractor.

In addition to Stoneleigh Corpus Christi, Passco and Seneca Investments are developing the 318-unit Stoneleigh on Kenswick at 19800 Kenswick Dr. in Humble, a Houston suburb, and has just broken ground on a 30,000-sf medical office building in Dallas. Levy says Passco will look for more development opportunities in 2009, with Texas as a prime area of consideration along with the Carolinas, Florida and Western US. "What we endeavor to do is something with a three- to five-year development scenario," Levy says.