DALLAS-Locally based Prescott Realty Group and Bedrock Commercial LLC have combined forces to launch their first development. The partners are set to break ground shortly on the 260-unit Autumn Woods, with completion scheduled for spring 2012.
Located on Divide Parkway near Cantral Road, the 15 acres on which Autumn Woods will be built is part of a master-planned community in West Little Rock. Estimated construction costs on the project are $18 million.
Prescott managing director/multifamily Taylor Stone says Autumn Woods may be the partnership’s first project, but don’t count on it to be its last. The partnership was formed when management of both companies compared notes and realized that, while were headed to the same goals, the companies had different things to offer.
“They have an established background in Dallas and Little Rock, and can bring contractors to the table, which they did in this particular case,” Stone comments. VCC Construction, which has offices in Dallas, Little Rock, AR and other locations nationwide, is the contractor on Autumn Woods. Meanwhile, Prescott is scouting out potential opportunities for investment and/or redevelopment.
Stone says the partners aren’t restricting themselves to multifamily, either. Any development project in major southwest cities that has hit a roadblock is fair game for these two companies.
“What we’re doing is looking for projects with good opportunities; these days, that can be distressed projects,” Stone explains. “We can come in, bring additional equity, or expertise, or other skills, to the table to complete them.”
Stone tells Globest.com that Autumn Woods was brought to the partners’ attention by the developer, who needed some help to move the project forward. “We came in and helped solve his issues and can now take this to completion,” Stone says.
Stone acknowledges that what will happen to Autumn Woods once it’s completed is still uncertain. Included in the financing is a HUD 221 (d) 4, 40-year, fully amortized construction loan with an interest rate of less than 4.25%. Given that, and the current market, “it’s too soon to speculate whether we’ll sell when it’s finished,” Stone says.
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