$30M Energy Star Complex First in North Texas

FRISCO, TX-After sizing up the demographics, Tonti Properties has decided to go the distance to develop the first Energy Star-qualified multifamily complex in North Texas. The 270-unit La Valencia at Starwood carries an all-in development tab of $30 million.

Rick Perdue, vice president of acquisitions and development for the Dallas-based developer, tells GlobeSt.com that the extra energy-efficient measures added roughly 2% to the cost, but the investment will return a premium over the long haul for La Valencia at Starwood, a 15-acre project planned for 6805 Lebanon Rd. "We don't want to build a product that five years from now is going to be outdated due to mandates," he says.

Perdue and the Tonti team believe the result will be higher occupancy, which over time translates into a rent premium. The one-, two- and three-bedroom apartments, ranging from 753 sf to 1,450 sf, have projected rents of $1.10 per sf to $1.15 per sf.

With the slabs just poured, the project will go vertical in 30 days. The first units will come on line in July. La Valencia will have 15 residential buildings and one clubhouse. Womack + Hampton Architects LLC of Dallas designed the complex, with Linda Tycher, also from Dallas, creating the low-water usage landscaping. Balfour Beatty Construction, which bought Centex Corp.'s construction division in early 2007, is the general contractor.

Perdue explains that Frisco's resident profile triggered the decision to test the market with an Energy Star-qualified project despite the long and complicated check list of items. "We decided to bite the bullet and do it," he says. "We're trying to differentiate ourselves. Frisco has an A-plus profile and we think that tenant profile matches up nicely with those seeking a green product."

Among the design features are energy-efficient air conditioning and heating systems, solar deflecting-thermal resilient windows, extra insulation, Energy Star appliances and energy-efficient lighting. "This energy-efficient construction will provide our tenants with reduced monthly utility expense and consequently lessen the environmental impact of this project," says Adam Auensen, La Valencia's development manager. The complex also will feature commingled recycling containers, water-efficient landscaping and irrigation.

The developer used James Brauer with TexEnergy Solutions as its consultant in ensuring it complied with all Energy Star requirements. "Tonti Properties, as the first builder of Energy Star apartment buildings in the North Texas region, is leading the charge in the next major battle in residential energy efficiency," he says. Likewise, he adds, the project also puts the developer at the forefront of the green movement for the multifamily sector.

"People are going to realize their power bills are going to lower and stay," Perdue says. "There's not an upfront premium, but we think the premium will be over time in occupancy and low turnover."