Zerga Cos. of McKinney, a mixed-use developer venturing into the seniors market in its homeport, has broken ground on Chaparral Senior Housing, a class A, gated development rising on a 9.9-acre tract along Greenville Avenue in Allen. The project is set to deliver in late December.
Bernard P. Malone, president of Dallas-based Malone Mortgage Co., tells GlobeSt.com that the only hurdle in financing the deal was "establishing market demand." He says the requirement to show demand has been "the big question in North Texas for several years." Allen's population is 67,828 and the average annual household income is $94,664. By 2010, the projection is 89,000 residents.
Jeff Rogers, a senior vice president for Malone, arranged a financing package with a 15-month construction period with a pre-closed, permanent 40-year loan that fully amortizes at a 5.6% fixed-rate interest. Malone provided the financing, which is fully assumable, through HUD's 221 (d)(4) full-insurance, Multifamily Accelerated Processing program.
The three-story Chaparral Senior Housing is divvied into 124 one-bedroom units and 72 two-bedroom apartments. The one-bedroom units, ranging from 689 sf to 775 sf, will rent for $735 to $790 per month; and the two-bedrooms, designed with 1,039 sf to 1,120 sf, are tagged at $935 to $1,000 per month. Dallas-based Capstone Real Estate Services Inc. will manage Chaparral Senior Housing, which is being outfitted with fitness and business centers as well garden areas and a spa.
Galier, Tolson, French of Dallas designed the complex. ICI Construction Inc., also from Dallas, is the general contractor. Zerga Cos.' president and CEO is Jerry Green, a former Southwest regional development partner of the Denver-based Simpson Housing LP.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.