Tuesday, February 07, 2017

Why Stan Thomas brought $83M in debt to his growing $3B Wade Park vision in Frisco

A New York City-based family real estate investment firm has closed on a $82.75 million deal to help finance the construction of Frisco's Wade Park, a 175-acre mixed-use development near the Dallas Cowboys' world headquarters.
The deal will help fund the project, which developer Stan Thomas says has grown in size and scope over the past year.
"It's fair to say this project will be worth $3 billion upon completion," Thomas, CEO of Atlanta-based Thomas Land & Development Co., told the Dallas Business Journal, in a recent interview. "The project has escalated and is so much denser and bigger.

"Some of these buildings we have on our plans now didn't exist on the original plans," he said, adding the initial phase of construction — including the new Whole Foods grocery store, which is currently being built — will total roughly $600 million in construction costs.

The new financing deal through Gamma Real Estate will help develop the 175-acre development, which is expected to pencil out at 182 acres after a land deal with the City of Frisco closes in the near future. Terms of the financing deal were undisclosed.

Gamma Real Estate is proud to play a role in "one of the most significant development projects in the nation," said President Jonathan Kalikow.
"Frisco is one of the country's fastest growing cities, averaging nearly 6 percent population growth annually in recent years," Kalikow said, in a statement. "Wade Park will be a timely boon for this important bedroom community serving Dallas and Fort Worth."

At build out, Wade Park is expected to total up to 6 million square feet of office space, 1 million square feet of retail space, 2,800 luxury apartments and two hotels.

Whole Foods is the first tenant to undergo construction. And others will follow at Wade Park, which has a long list of project tenants that include Hotel ZaZa, The Rustic, an iPic Theater and Anthropologie.
That construction is awaiting roadways and other infrastructure before it can begin.

The initial phase will sit on the north side of the Wade Park project, which sits on natural rock and an underground parking garage. Even though the project has escalated in scope and taken longer than anticipated, Thomas said he wouldn't change a thing.

Candace Carlisle/Dallas Business Journal.