Viridian Development Sold for $141.4 Million

Houston developer, Canadian investor bought the 2,083-acre property.

By Robert Cadwallader

ARLINGTON - The 2,083-acre Viridian master-planned community in far northeast Arlington has been sold to a developer and real estate investor for $141.4 million, Canadian investor Tricon Capital Group said in a statement.

Houston-based Johnson Development Corp. committed $116 million and Tricon committed $25.4 million to the purchase from a venture controlled by CrossHarbor Capital Partners of Boston.

The new owners are not looking to make any changes that customers would notice, said Larry D. Johnson, president and CEO of the privately held Johnson Development.

"We think it's well established," he said. "The previous developers have done a great job. We're going to keep the same onsite development team and we plan on maintaining the master plan going forward."

Viridian's value on the Tarrant County property tax rolls surpassed $200 million this year. It would top out at around $2 billion when construction is completed, Viridian general manager Robert Kembel said Friday.

Johnson Development specializes in master-planned communities. Tricon is a principal investor and asset manager focused on residential real estate in North America.

Viridian started as a Huffines Communities property where development began in 2011. It opened in 2012 with 180 lots, said Kembel, who was Huffines' president in 2007 when it bought the land north of Collins Street and Northeast Green Oaks Boulevard.

"We have 500 homeowners moved in and another 150 houses are under construction, so you can see we're really doing well, said Kembel, who leads the six-member development team retained by the partnership. He said they're happy not only about keeping their jobs but also about working with Johnson Develop-ment.

"Johnson is about as class of an act in master-planned community developments that exists in the state of Texas. We're thrilled, he said.

Councilman Charlie Parker said he's glad Kembel is staying with the project because of his positive track record with the city.

"That's a very astute move on Johnson Development's part," said Parker, whose District I includes Viridian. "When Bob Kembel, as a developer with the city of Arlington ... comes into the office, we know we're going to get a very good project. He's never disappointed us in the past with the quality of his products."

Parker said Viridian, with its projected home values ranging from the $200,000s to more than $1 million, will fill a void in the Arlington housing market.

"We can house ballplayers, we can house young professionals, We can house anybody with an upwardly mobile pay scale in that particular community," Parker said.

Johnson Development's master-planned communities include 14 in development: 13 in Houston and one in Atlanta, Johnson said.

The Johnson-Tricon venture previously bought 2,046 acres in a north Houston partnership, now known as Grand Central Park, and the 3,200-acre west Houston master-planned community of Cross Creek Ranch.

About half of Viridian's acreage is in wetlands and other protected natural areas. The adjacent [River] Legacy Park provides 1,300 acres of parkland along the Trinity River.

Viridian's completed amenities include four swimming pools, amphitheater, volleyball court, bathhouse, community center and the first 7 of 20 miles of paved trails.

It has 500 acres of parks, trails and open spaces as well as 600 acres of lakes and streams.

The master-planned community is among the few in Texas to be named a Certified Gold Signature Sanctuary by Audubon International for planning and environmental stewardship, the statement said.

Kembel said the property was valued on the tax rolls at $10 million when it was bought in 2006, or 5 percent of the current value. The taxes generated for the city of Arlington, the Hurst-Euless-Bedford school district, Tarrant County and other taxing entities would be about $60 million annually, based on the projected build-out value of $2 billion.