Denton Mixed Use Community

The proposed development at Prominence Parkway, Denton, Texas, encompasses a total site area of 10.464 acres and will be developed as a mixed-use community integrating multifamily residential, professional office, and retail components. The project will deliver 155,240 square feet of multifamily residential space, 105,000 square feet of Class-A office space, and 71,660 square feet of retail commercial space, aggregating to a total built-up area of 331,900 square feet across the site.

The development will be executed in two distinct phases, ensuring systematic construction progress, structural integrity, and minimal disruption to the surrounding environment.

Phase 1 — Site Preparation and Base Construction

Phase 1 will encompass comprehensive soil development and foundational works across the entire 10.464-acre site. This phase involves geotechnical assessment, soil remediation where necessary, compaction, and grading to prepare the land for vertical construction. Upon completion of soil development, three independent structural bases will be established — one dedicated to the multifamily residential tower, one to the office block, and one to the retail commercial component. These bases will be engineered to support the full load and specifications of their respective superstructures, ensuring long-term structural resilience and compliance with all applicable municipal and state building codes.

Phase 2 — Vertical Boundary and Perimeter Development

Phase 2 will focus on the establishment of a continuous vertical boundary enclosing the entirety of the 10.464-acre development. This perimeter structure will serve multiple functions: defining the legal and physical extent of the property, providing controlled access points for residents, tenants, and commercial visitors, and reinforcing the security and aesthetic coherence of the overall development. The boundary design will be consistent with the architectural language of the project and will complement the mixed-use character of the Prominence Parkway corridor.

Financial Breakdown:

The project is going to be heavily leveraged, with a debt capital of $52.98M. The mortgage terms are set at 6% interest rate and 30-years of maturity. The loan will be dissected into three equal portions of $17.65M to minimize the cost of idle funds. The payments will follow a capital repayment structure. Of the equity, regardless of the financial contribution between the general and limited partners, there will be a 20-80 ratio for distributing any excess cash flows. The 3rd year is expected to be the exit year for any of our endeared short-term high-value individual and commercial clients. Based on the projected numbers, on the liquidation of the asset, the LP investors will receive a one-time $25.46M, thus making their investment 6.67X, to $34.98M. The unlevered IRR of this project could be 28.59% but as this project is heavily debt-financed, with over 90% of LTV, the leverage effect skyrockets the IRR to 59.13%.