North Texas apartment builders are headed to the exurbs for their newest projects.
The latest of these developments is a 284-unit rental community being built in Melissa by Dallas-based HighPark Capital.
Located at the north end of Collin County at the southeast corner of State Highway 121 and Milrany Lane, the Farmhouse 121 apartments will open in early 2023.
The rental project is northeast of U.S. Highway 75 in an area seeing widespread single-family housing development.
Plans for the project include a resort-style pool, a fitness facility, a resident lounge with a co-working area and a dog park.
“We like Melissa a lot,” HighPark Capital CEO Jeff Williams said. “It has great schools like many of the nearby Collin County cities, but it’s a bit more on the affordable side.
“Access is fantastic with its proximity to U.S. 75 and S.H. 121,” he said. “We are active throughout D-FW and Central Texas. “
HighPark Capital has other apartment developments in locations including Weatherford, Granbury, Midlothian, Cleburne, Willow Park and Odessa.
Apartment developers are increasingly looking at sites outside D-FW urban areas for new building opportunities.
Irving-based builder JPI has started a senior rental project north of Melissa in the town of Anna. The Parmore Anna Senior Living project will have 185 apartments and is being built in partnership with the city of Anna.
Jay Parsons, an economist with Richardson-based apartment industry firm RealPage, said he’s tracking more of these new developments on the edges of the D-FW area.
“These exurbs are booming, and apartments naturally follow single-family and retail developments,” Parsons said. “The number of apartment projects in any given exurb is pretty manageable.
“The bigger shift is the type of rentals being built,” he said. “We’re seeing more build-to-rent single-family rental communities, which are often backed by traditional apartment investors and run by property managers with a background in apartments.”
The D-FW area is the country’s fastest-growing apartment market with more than 42,000 rental units on the way.
And in 2021, North Texas builders started 3,885 rental houses, about 7% of the area’s total single-family home construction, according to Residential Strategies.