The Importance of Construction Contracts in Frisco’s Exploding Multifamily Market

Gray Reed
Contact

Gray Reed

Surprise, surprise Frisco, Texas is booming with no evidence of slowing down. In line with that growth, the Hillwood Communities Frisco Station development started in 2016 is poised to potentially add approximately 410 apartments at an estimated cost of construction $94.2 million deliverable in 2026. According to a recent Dallas Business Journal article by Noor Adatia the project will be named Frisco “UL4,” include 2 residential buildings, 2 parking garages amounting to 410,000 square feet of rentable space. In total, it is anticipated that with the addition of the Frisco “UL4,” the Frisco Station development will attract as many as 3,500 residents and approximately 15,000 daytime employees to the area.

As Noor Adatia describes in her article, the Frisco Station development is not the first such development in the Frisco area. In fact, Hillwood Communities has already completed 3 similar projects in Frisco and this will not be their last. With the relocation of significant business to the area such the Toyota-Lexus headquarters and PGA Tour headquarters there has been a constant demand for housing. These Frisco Station developments are serving that demand and it will be interesting ultimately see how far this trend of multifamily development will extend, and whether or not potentially declining interest rates push consumers back towards single family construction.

As with any significant commercial development such as Frisco Station and Frisco “UL4” there will be multiple layers of contractors, subcontractors and suppliers. At some point, it is likely that issues will arise related to payment resulting in liens or potential bond claims will arise, as well as, delay claims, potential construction defects, significant material price increases or supply chain delays. Carefully drafting the construction contracts in anticipation of these issues will be critical.   

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Gray Reed

Written by:

Gray Reed
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Gray Reed on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide