The property will be constructed in a Qualified Opportunity Zone in Dallas
JLL announced today that it has arranged $7.5 million in construction financing and secured the land site for the development of Lone Star Self-Storage, a to-be-built, Class A self-storage property housing 1,255 climate-controlled units in one of the fastest-growing areas of the Dallas MSA and within a Qualified Opportunity Zone.
JLL worked on behalf of the developer, Austin-based Central Southwest Texas Development, LLC (CSW Development), to place the five-year, non-recourse construction loan with a regional bank. Additionally, working on behalf of the developer, JLL brokered the sale of the 2.4-acre land site for the facility.
The three-story Lone Star Self-Storage will total 151,950 square feet and will house only climate-controlled units ranging in sizes from 5x5 to 13x13. The property will be constructed at 2500 Lone Star Drive on the north side of Interstate 30 just west of downtown Dallas. The surrounding area has a dense population, with more than 126,200 residents. The population is expected to grow by more than 10% before 2023.
The JLL Capital Markets team representing the borrower was led by Senior Vice Presidents Griffin Guthneck and CW Sheehan.
The JLL team that represented CSW Development in the land site acquisition included Managing Director Mark Newman and Associate Amelia Rohrman. Candace Rubin of Candace Rubin Real Estate represented the seller, SPCA of Texas, in the negotiation.
According to JLL Research, North Texas has been a growing market with a current population of 7.7 million. Within 10 miles of 2500 Lone Star Drive, the population has increased 15% since 2010 to almost 1.2 million and is forecast to continue expanding another 7% over the next five years. Despite the large and increasing population statistics in the immediate area, the market is highly under-supplied from a self-storage perspective. The three- and five-mile radii have 3.08 and 2.92 square feet of supply per capita, respectively, which is well below Texas’ average of eight square feet per capita.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
About Central Southwest Texas Development, LLC
The CSW Development team has over 90 years of experience in the real estate industry. Since their inception in 2004, they have successfully completed more than 100 real estate projects with a combined market value of over $700 million. CSW currently has 22 projects under construction with a combined value of over $200 million, including three climatized self-storage facilities in addition to the Lone Star project. Learn more at CSWDevelopment.com.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
