Metropolitan Life Insurance has made a $145 million investment in Vitruvian Park, an Addison apartment community. The formation of the Vitruvian Park partnerships expands on an earlier joint venture between UDR, a Denver-based real estate developer, and MetLife. So why has MetLife chosen Addison and Vitruvian Park for this investment? The strong local economy and growth in the area has attracted this large partnership.
“We are encouraged by the strong job growth of the Addison market and believe that the long-term fundamentals reiterate our continued investment in Vitruvian Park and we look forward to continuing the build-out of the project with our new partners,” said Warren Troupe, UDR’s Senior Executive Vice President.
MetLife has bought a 50 percent stake in the development, including the Savoye and Savoye Squared communities, the recently opened Fiori, and almost 30 acres of undeveloped land. It is located south of Spring Valley Road near Brookhaven College.
“The acquisition of a joint venture interest in Vitruvian Park allowed MetLife to buy into three existing Class A apartment communities plus entitled land that provides us with a steady pipeline of new development opportunities in the future,” MetLife said in a statement.
The Vitruvian Park development is part of a project by UDR and the Town of Addison to replace almost 3,000 old apartments with new rental units and retail and office space.
The development will continue to enjoy extensive support from the Town of Addison, which has currently invested $23.3 million of a $40 million commitment to enhance infrastructure at the project.
“UDR is a well-established, experienced and financially strong partner and this long-term investment will help MetLife expand its existing relationship with them.”
As part of the venture, UDR has secured $118.3 million in debt for the three communities.
This partnership will “expand the Company’s relationship with MetLife, a stable, long-term, committed multifamily partner,” UDR said in a recent press release. It also allows for the continued build-out of Vitruvian Park and any related development fees associated with future development.
“Vitruvian Park is a master plan that was designed to create a live, work and play lifestyle destination in the North Dallas submarket of Addison, Texas,” said Warren. “The three newly constructed apartment communities at Vitruvian Park are complimented by a vibrant mix of shops, eateries, entertainment, and a 12-acre public park.”
The MetLife and UDR joint venture also includes two other luxury apartment communities – the Acoma in Denver, Colorado, and the Current in San Diego, California.
MetLife is one of the largest portfolio lenders in the real estate investing industry, with more than $43.1 billion in commercial mortgages outstanding at the end of 2012.
“Although the existing assets are part of MetLife’s General Account, the venture structure would allow for those assets and any future phase participation to be placed into MetLife’s real estate investment management platform,” said Brian Fox, MetLife’s Director of Business Development.
The total MetLife and UDR partnership comprises a total of 23 operating communities containing 4,760 apartment homes.
UDR began construction of the almost-100 acre Vitruvian Park development in 2008. The master development plan includes additional residential options for sale and lease, as well as retail, restaurant, and office space. It has a total projected value of $1 billion.
The Savoye and the Savoye Squared communities have already been completed and contain 739 apartment homes.
The third building, the 391-unit Fiori, was designed by architects Good, Fulton & Full, and has an estimated total cost of $98.4 million.
UDR estimates that approximately 2,000 to 2,500 homes and 45,000 to 50,000 square feet of retail space will be built on the 28.4 acres of un-developed land.
UDR, an S&P 400 company, is a multifamily real estate investment trust that manages, buys, sells, develops, and redevelops properties in the United States. For more information about UDR, please visit www.UDR.com.