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ADDISON, TX-Post Properties Inc. has secured full ownership in Post Addison Circle, save for some “for sale” condos, in a $19.5-million buyout of Gaylord Properties Inc. of Oklahoma City. The deal clears Gaylord of nearly $15.3 million in debt while giving Post Properties a projected “going in” FFO yield of 8.9%, according to a press release.

A contact at Atlanta-based Post Properties was unable to disclose occupancy for the 800-acre, high-density development or the percentage of Gaylord’s stake in the award-winning, mixed-use project. The seller did not return telephone calls by press time. The buyout encompasses 1,334 apartments, 110,000 sf of retail space, 40,000 sf of office product and 20,000 sf of storage facilities. The North Dallas complex brings in a monthly rent of $764 for a 527-sf unit up to $1,700 for a 1,212-sf design.

Addison Circle was built in three phases, beginning in 1993. It rose as a public-private partnership led by the property owner, Gaylord Properties, and developers, Post Properties and Dallas-based Champion Partners, according to information from the Mid-America Regional Council. At full build-out, Addison Circle is to contain up to 4,000 residential units and four million sf of office and retail space.

The Mid-America Regional Council says the project stands out because it used a public-private partnership “to provide financing, to determine the design and location of buildings and land uses, to help revise codes and to generate public support for the project.”

Addison Circle was launched with a TIF that carried up-front financing to cover infrastructure costs. The developer, in exchange for the publicly financed infrastructure, agreed to provide 1,500 residential units in the first five years. Another $4 million in funding was set aside, but its release is tied to developing more residential units. Mid-America says the public investment will total $9 million at full build-out while the private investment’s bottom line is projected to hit $300 million.

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