Class-A Development, Mansfield, TX

We are excited to announce that we're moving forward with a 200-unit project in Mansfield, TX that we think will be a perfect entry into the Class-A space in DFW.

• Excellent highway access to downtown Ft Worth, DFW airport, Arlington/Irving, and Downtown Dallas.
• Equivalent location to Flower Mound and Plano on the north side!
• HEB flagship store announced bringing 700 new jobs
• Film studio development announced bringing 2000 new jobs
• Two new commercial multi-use developments bringing 1500+ new jobs

Bottom line, there's a ton going on in Mansfield right now and we're excited to join that momentum with this project.We're anticipating returns similar to our other development deals - with a development phase preferred return of 15% starting the day of our investment! Overall returns in the 25% IRR range. 

As you know, we haven't put any value-add deals under contract since the first half of 2022. We're still seeing about a 15-20% spread between buyers and sellers (and we're taking 2023 to really hone in on our operational bench).  But last year we started working on a few development opportunities in anticipation of this lull in the value-add space. We also recently added a VP of Development as we build out this side of the business.

All that to say, we love the DFW market but paying 4-caps for value-add deals in today's market just doesn't make sense.  Adding new development to the portfolio is allowing us to continue growing in this top market without giving up on the returns.  We found this 10 acre piece of land in Mansfield awhile back and have been prepping it for investment.  We're picking it up from another developer in the market who was looking to offload what was for them a smaller project.  They were just about to get final site plan approval and we've since taken over that process so we could have the final say in the overall site plan and floor plans.  We've already added garages and a larger community center while maximizing the natural topography of the existing land.

The Mansfield area is currently one of the top growth suburbs of DFW - and if you know anything about DFW, it's a crazy good market.  The challenge in DFW isn't the growth - it's figuring out how to buy/build at a price that makes sense.  Everyone wants to be here.  With this Mansfield deal we initially were a little skeptical because of costs but after connecting with a well-known GC, Wade Construction, and doing some value-engineering, we were able to get our costs to a better-than-expected level and are ready to move forward.

This is going to be a legacy asset.  Similar to if you had built in Plano, Carrollton, Frisco, etc.  This where the growth will be for the next 10 years.  The other reason this growth will continue is leadership.  The town has some of the best leadership in the DFW area - boasting an economic development corp akin to much larger cities.  In combination with the city council, they're striking a nice balance between historic preservation and growth - and in my opinion that's what today's residents love most.  Folks want a beautiful balance between easy access to retail and a sense of true community (i.e. main street).

If you want more details on the latest economic growth, do a google search for "business economic news mansfield tx".  But remember, this market is also just a benefactor of the much larger DFW market that continues it's meteoric rise as a top market in the country!

Looking to find out more about this limited opportunity? Click the link here to view the entire deal packet.

Live Webinar Replay 

If you really want to dig into the details but didn't get a chance to see the live webinar, here's the replay.

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