Sam Zell’s Chicago Real Estate Company Takes New Frisco Apartments

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A new Frisco rental community has changed hands, with the Kilby Apartments in Frisco Square being sold to Chicago-based Equity Residential.

The sale comes as the developer of Kilby and Equity Residential are embarking on a $ 1.9 billion development venture.

Toll Brothers and Japanese builder Daiwa House Group built the 258-room Kilby Apartments just east of the Dallas North Toll Freeway. The four story rental community opened earlier this year.

Toll Brothers and Equity Residential have just formed a huge development firm to build apartments in markets such as Atlanta, Austin, Boston, Dallas-Fort Worth, Denver, Seattle and San Diego. The two companies contributed $ 750 million in equity to the venture.

Over the next three years, Equity Residential will invest 75% of the equity in each new apartment project and Toll Brothers will invest 25%.

“We are delighted to be working again with Toll Brothers and their experienced apartment development team, with whom we have enjoyed a long and successful business relationship,” said Mark J. Parrell, President and CEO of Equity Residential , in a press release. “This business will combine the market insight and strength of Equity Residential’s balance sheet with Toll Brothers’ existing in-depth development capacity to produce high quality apartment properties in our expanding markets and primarily in the suburban areas of our existing markets that appeal to our affluent tenant population.

Parrell said the new partnership “will accelerate our diversification efforts and allow us to effectively scale up our development efforts.”

In addition to the new apartments in Frisco Square, Toll Brothers has built several rental communities in North Texas, including a new skyscraper in the Oak Lawn neighborhood of Dallas and apartments in West Dallas.

Equity Residential does not have a significant presence in the D-FW apartment market. The Chicago-based company was founded in the 1960s by legendary real estate investor Sam Zell.

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