JPI has begun construction on a $132 million apartment community in Denton, Texas, using tax-exempt municipal bonds for financing. The 461-unit development is located at North Bonnie Brae Street and Bronco Way. This marks JPI’s first project using bond financing through a public-private partnership with the Denton Housing Authority, which owns the land. Berkadia Affordable Housing arranged the municipal bond financing, while JPI will manage development, construction, and asset management.
JPI CEO Payton Mayes said the use of municipal bonds allowed the company to provide workforce housing without relying on traditional capital markets. “The capital markets have been challenging over the past few years, but this was another tool in our tool chest that we could really bring value to the municipalities,” Mayes told the Dallas Morning News.
Mayes also indicated that JPI is discussing similar projects with other municipalities. “As more municipalities kind of get to understand the structure … we think that more and more municipalities will favor this over some alternatives,” he said.
The Denton Housing Authority is expected to receive $35 million in equity from this arrangement over ten years. Half of the units will be set aside as affordable housing: 35 percent for households earning up to 80 percent of area median income (AMI), 10 percent at 60 percent AMI, and 5 percent at 50 percent AMI. The rest will be market-rate apartments. Initial deliveries are planned for next fall, with full completion anticipated in early 2027.
Elsewhere in Denton, HL Communities—a division of Holt Lunsford—has started developing workforce housing near Texas Health Presbyterian Hospital and Texas Woman’s University.
JPI currently has seven active projects under construction across Dallas-Fort Worth, including a $100 million community in Haltom City and an $80 million Jefferson Ridglea Village project in Fort Worth.
