Daiwa House Industry to Start Rental Housing Project in Dallas, Texas, United States
- 2nd Joint Real Estate Development Project in U.S. with Lincoln Property Company -
OSAKA, Japan, Jan. 8, 2015 /PRNewswire/ -- Daiwa House Industry Co., Ltd. (hereinafter, "the Company") started a rental housing project (Water's Edge Project) on November 14, 2014 in Farmers Branch, Dallas, Texas, the United States of America (hereinafter, "the United States").
The project is the second joint project with major U.S. real estate company Lincoln Property Company (hereinafter "Lincoln Property") following an earlier rental housing project (Berkeley Project) started in May 2014 in Fort Worth, Tarrant, Texas.
The Company plans to purchase and develop 150 billion yen worth of rental real estate over the next three years through 2016 via its U.S. subsidiary Daiwa House California, with the goal of achieving annual net sales in the United States of 50 billion yen by fiscal 2018. At the same time, the Company will also start logistics warehouse and single-family homes businesses in sequence, expanding its operations in the U.S. market to develop a new source of revenue.
(Photo: http://prw.kyodonews.jp/opn/release/201412256543/)
Key Data
1. A large-scale 582-unit project with a site area of 110,000 square meters
2. A rental housing project located in Farmers Branch, Dallas, Texas, close to the headquarters of major FORTUNE 500 (*1) companies
3. Structure design and resident services targeting middle-to high-income earners
(*1) A list published each year by Fortune magazine ranking companies throughout the United States by company revenue
Background of the project
The Company established four local subsidiaries, mainly in the states of California and Texas, starting in 1976. In the nine years through 1984, it supplied approximately 10,000 single-family homes. In April 2011, the Company established Daiwa House California in San Jose, California. In August 2011, the Company purchased an apartment building (42 units), which it now manages and operates.
In March 2014, the Company partnered with Lincoln Property, which has the third(*2) largest number of rental properties under management in the United States. Partnering with Lincoln Property, the company acquired a 406-unit apartment complex, the Berkeley, in Fort Worth, Texas, in May of the same year. Another 310 units are currently being developed to create a 716-unit property. The Company has made use of the expertise it has accumulated in Japan with regard to real estate development and the rental housing business to acquire, manage, and develop this property.
Now, the Company has started the Water's Edge Project with an eye to further business expansion in the United States.
(*2) According to Multifamily Executive magazine; ranking as of October 2013.
1. Large-scale 582-unit project with a site area of 110,000 square meters
The Water's Edge Project is the Company's third rental housing project in the United States. The site area of approximately 110,000 square meters amounts to a footprint roughly 2.5 times that of the Tokyo Dome. With 582 units, it is a large-scale rental housing project. The Company purchased an apartment property, Water's Edge I (281 units; operational from February 2014), in Farmers Branch, Dallas, Texas, from Lincoln Property, and began apartment operations in November 2014. At the same time, the Company acquired an adjacent plot of land for real estate development, which it will begin developing as Water's Edge II (301 units) from the spring of 2015, with completion scheduled in stages for the winter of 2016. The entire rental-housing project will have a total of 582 units. In this project, the Company will make full use of the expertise and technologies it has accumulate over many years in rental housing and condominiums. Operating it together with the previously established Berkeley Project, the Company will acquire expertise in the U.S. rental housing business, setting the stage for future business expansion.
2. Rental housing business in Farmers Branch, close to the headquarters of major FORTUNE 500 companies
Farmers Branch, Dallas, Texas, United States is located in the Dallas-Fort Worth-Arlington, TX Metropolitan Statistical Area, also known as the Dallas-Fort Worth Metroplex, which comprises 10 counties and has a combined population of some 6.7 million people. The Metroplex is home to thriving industries such as oil, aircraft, and electronics.
Several FORTUNE 500 companies have their headquarters located close to Dallas, and the project is convenient to the headquarters of ExxonMobil Corporation, Fluor Corporation, and Kimberly-Clark Corporation, among other major companies. The project is also just a 20 minute-drive from Dallas/Fort Worth International Airport, which ranks fourth in the United States for the number of users and third for the number of arrivals and departures. The region is growing, with the population of Farmers Branch projected to increase by 20% over 20 years from 35,000 in 2010 to 43,000 (*3) in 2030, while the projection for Dallas County is for a 26% increase over the same period, from 2.23 million to 2.81 million.
(*3) Statistics from the North Central Texas Council of Governments
3. Structure design and resident services that target middle to high income earners
The project is mainly targeting customers in the Generation Y (*4) segment, from whom stable rental demand is expected, with a focus on professionals or employees of major companies with high household incomes residing in Texas. The project has a diverse lineup of floor plans ranging in area from 68 square meters to 124 square meters (one-bedroom, one-bathroom units to three-bedroom, two-bathroom units). The complex will also include an exclusive resident's club house, which is uncommon in Japan, as well as an on-site sports gym and business center (*5) available for use 24 hours a day. Other shared facilities include a swimming pool, dog run, and barbeque area. The rental housing area will be entirely fenced to form a gated community (*6), to create a secure residential area.
(*4) The generation born between 1975 and 1989. In the United States, Generation Y numbers around 75 million people. Over the next 15 years, the people of Generation Y and their offspring (Generation Z) are expected to be the main drivers of demand for rental housing.
(*5) A space equipped with PCs, printers, and other equipment.
(*6) A residential area with restricted entry with a security guard that may be employed to patrol the area and take other measures.
(1) Uncompromising simple exterior design and highly convenient internal garaging
The entire exterior of the building features a brick pattern with accents of stone facing to present a high quality external appearance. Approximately 60% (345 units) of the 582 units will be provided with internal garaging.
(2) An attractive location overlooking a lake
Approximately half of the residences overlook Las Colinas Crossing Lake, providing a view with abundant nature from inside the rooms.
There is also a walking path along the lakeside, allowing residents to enjoy the waterfront environment in their daily living.
(3) Full range of convenient shared facilities
Shared facilities for residents of the rental housing including a club house in the grounds, and an on-site sports gym and business center are available for use around the clock. Other facilities include a swimming pool, dog run, and barbeque area. Because approximately 25% of the residents have pets, the Company will work to create a pet-friendly community.
4. A joint project with major U.S. real estate company Lincoln Property
The Company has partnered with major U.S. real estate company Lincoln Property to promote its rental housing business in the United States, acquiring property developed or held by Lincoln Property to build rental housing and operate a rental housing business.
As the first step in this process, the Company acquired the rental housing property Berkeley I (406 units; operated since 2008) in Fort Worth, Texas, from Lincoln Property and has been operating the rental housing business since May 2014. At the same time, the Company acquired an adjacent plot of real estate and began construction of Berkeley II (310 units) in May 2014, aiming for completion during 2015. The entire rental housing project will have a total of 716 units.
About Lincoln Property
Lincoln Property Company is a major U.S. real estate company established in 1965 and headquartered in Dallas, Texas. The company aims to build high quality residential communities. It has operations in over 200 cities in the United States and in 10 countries throughout Europe. Lincoln Property has carried out over 19.53 million square meters of rental housing developments and 13.11 million square meters of commercial real estate developments. The company also manages over 153,000 rental residences and 17.58 million square meters of commercial real estate.
Project Outline
Location: Farmers Branch, Dallas, Texas, United States, and elsewhere (1701 Royal Lane, Farmers Branch, TX75229)
Total number of units: 582 (22 buildings)
Water's Edge I: 281 units (11 buildings and one leasing office building)
Water's Edge II: 301 units (11 buildings and 1 leasing office building)
Total site area: 115,899 square meters
Total unit floor area: 51,320 square meters
Construction: 2 x 4 wood construction on post-tensioned concrete foundations (3 floors above ground)Floor space per unit: Around 68-124 square meters
Construction start: Spring 2015 (Water's Edge II)
* Water's Edge I completed construction in June 2014
Floor plan: one-bedroom, one-bathroom units to three-bedroom, two-bathroom units
Monthly rental price: Approximately 120,000 yen to 240,000 yen (converted at US$1 = 118 yen)
Scheduled date of completion: Scheduled to be completed in winter of 2016 (Water's Edge II)
Profile of Daiwa House local subsidiary
Name: Daiwa House California
Address: 101 Metro Drive, Suite 325, San Jose, CA95110
Investor: Daiwa House USA, Inc.
*A wholly owned subsidiary of Daiwa House Industry Co., Ltd.
Capital: US$29,870,000
Employees: Six (Three on assignment from the Company)
Business activities: Development and sale of real estate, rental of owned real estate, real estate consulting and other related peripheral services
Daiwa House Industry has expanded its operations as a pioneer of the housing industry in Japan for more than half a century, offering single-family houses, rental housing, condominiums, commercial facilities, and general business-use buildings. To date, we have supplied 1.5 million single-family houses, over 30,000 commercial facilities, and over 35,000 medical/nursing care facilities. Going forward, we will continue to promote our business operations overseas, leveraging on the strengths we have cultivated such as competitive technologies and product lines.
In addition, we have entered new businesses fields including environmental energy, robotics, and agriculture and are putting our full efforts into expanding our business operations, not only in Japan but also in the global market as well.
The head office is located in Osaka, Osaka Prefecture and its President and COO is Naotake Ono.
SOURCE Daiwa House Industry Co., Ltd.
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