On April 5, 2023, Legacy Partners and The Resmark Companies announced their JV has broken ground on a 336 unit apartment complex in Forney, Texas (a city that you might be familiar with if you obsessively track your Amazon packages like I do). Construction financing was provided by InterBank with Vanguard Real Estate Advisors brokering the deal. No other financing details were provided.
The complex, Legacy Gateway, is located within the Gateway master planned development in Kaufman county, a 25 mile drive east from downtown Dallas. The area has experienced strong growth and Legacy Gateway will not be the first luxury multifamily asset on the block (literally), which likely made obtaining financing easier to obtain in the current lending climate. The development's 14 acre lot is adjacent to three pre-existing apartment complexes: Gateway Pines, Gateway Oaks, and Gateway Cedars.
Complementing the neighboring apartments, Legacy and Resmark plan for Legacy Gateway to be a luxury multifamily asset. JHP Architecture and BBL Building Company will be serving as architect and general contractor, respectively. The complex will be made up of five three-story buildings, each consisting of studio, one-bed, and two-bed apartments ranging from 540 to 1360 SF. With average unit size of 841 SF over the 336 units, the complex will boast a total 282,736 rentable SF.
Highlights include smart-home integration, stainless steel appliances, and full size in-unit washer/dryers. Community amenities will include co-working spaces, a fitness studio, a pool complete with cabanas, an outdoor kitchen, and numerous dog parks. For the ~trendy~ among us, by far the most exciting piece of this development is the pickleball court(!).
The Gateway master planned development is a 2000 acre mixed use community that ultimately plans to have 1850 single family homes on top of multifamily, office, retail, and light industrial areas. The community aims to offer "the peaceful lure of small-town living within a close-knit community" while allowing residents to stay within convenient range of the metroplex.
The growth of Forney and, in turn, Gateway, has been bolstered by Amazon's investment into a fulfillment and delivery center in the city. The Amazon growth catalyst is a key factor to keep in consideration before drawing conclusions about the greater market. Although the DFW area has experienced strong growth and shown resiliency to market turmoil, Forney is not a microcosm of the greater metroplex. In today's interest rate environment, on the heels of a unprecedented decade of ultra-low rates, the abundant risk should be of paramount concern to any investor as market paradigms shift.