DALLAS, TX - Berkadia announced today that it has arranged an undisclosed amount of equity on behalf of Pivotal Residential and Novu Residential Group for the development of the Casona, a Class-A, 305-unit, elevator-served multifamily community located in Grand Prairie, Texas.
Cody Kirkpatrick, Noam Franklin, and Chinmay Bhatt of Berkadia JV Equity & Structured Capital sourced the equity from Parse Capital, an institutional investment firm that is exclusively focused on the residential housing sector. Trustmark National Bank and BOK Financial co-led the debt financing for the Casona on behalf of the two-bank syndication group. Groundbreaking is scheduled to commence in September 2024.
“The capital markets remain inefficient as a whole, but for well-located multifamily development opportunities alongside experienced development teams, there are still accretive, cost-effective equity partners deploying capital today,” said Kirkpatrick. “Novu and Pivotal are breaking ground on the Casona at a great time in the cycle and will be well positioned for a strong lease up upon delivery of this Class A development.”
“We are pleased to announce the Casona as our latest residential development. The North Texas market, both from a supply-demand standpoint as well as from an investment sales perspective, continues to outperform on a relative, risk-adjusted basis,” said Michael Ramsey, the Managing Principal of Pivotal Residential. “We would like to thank the city of Grand Prairie, nearby residents, and our banking & investment partners for a successful pre-development process in which all stakeholders were brought together to find creative solutions to enable our project.”
“We are extremely excited about our next development with Pivotal Residential in the Dallas-Fort Worth market. It continues to be a challenging capital and transactional environment, so it is critical to have strong and long-lasting financing partnerships in order to execute on a new development today. We are thankful to the Berkadia team for their diligence and support in finding the right equity group for this project.” said Patrick Jackson, CEO of Novu Residential Group.
Located at 3800 Robinson Road, the community will be developed on 33 naturally-wooded acres, of which only 18 acres will be disturbed – the remaining 19 acres will be preserved in its natural state anchoring over 2,000 feet of natural-path walking trails. The project will be amenitized as a best-in-submarket property featuring an 11,000 square foot integrated clubhouse; a resort-style pool with sun shelf and infinity edge details; a standalone pool pavilion with an indoor/outdoor lounge; a trailhead amenity area aggregating outdoor kitchen facilities and pickleball court space; a 5-hole “chip & putt” golf course; and a quarter-acre dog park area with large and small dog areas. Located at the intersection of I-20 and PGBT, the community will be able to provide the “best of both worlds” with easy access to wider Dallas-Fort Worth when residents need it and quiet living spaces buffered by protected, natural woodlands when they don’t.
Additionally, the development is within walking distance of Bass Pro Shops and Formula 1’s Andretti Karting & Games, both of which opened their doors in July 2024. In June, TopGolf announced that it will break ground this calendar year on its facilities which will also be within walking distance of the Casona.
Berkadia JV Equity & Structured Capital has arranged the equity on $700 million in total transaction volume over the past four months including recent closings in Denver, Tacoma, New Jersey, Detroit, and Reno.