Real estate investments don’t get much better than the one a joint venture partnership between Hines developers and real estate investor GTIS Partners recently pulled off in metro Dallas.

On the same day the partners bought a bank-owned townhome community in the Las Colinas area of Irving, Texas, the partnership also signed a contract to re-sell the unbuilt lots to a regional builder.

The 13.25-acre townhome project called La Villita, which includes 10 finished townhomes, 12 finished townhome lots, and other land that was reentitled from townhome lots to 64 single-family lots, is one of two new projects the partnership recently closed on.

The other is a 205-acre parcel that was formerly a commercial site in high-end Southlake, Texas, that Hines has reentitled for 404 single-family homes. The land is part of a mixed-use master planned development called Carillon.

“Hines did a very good job on the [entitlement] approvals,” said Josh Pristaw, senior managing director for GTIS.

Because Hines was able to re-zone to lots atypically small for the community, the partnership will be able to sell lots to builders suitable for homes in the $650,000 to $800,000 range in the community where the average house price is $1 million, Pristaw said.

That price point in Southlake, which is known for its top-tier school system and close proximity to the airport as well as large local employers such as Lucent, Verizon, and Pfizer, should make the lots highly desirable.

The plan is for Hines to complete the lot development and infrastructure for the Southlake land and deliver finished lots to regional and custom builders in phases. Already, builder interest in those lots has been strong, Pristaw said.

In both transactions, a fund managed by GTIS Partners invested equity capital in partnership with Houston-based Hines, a privately owned real estate firm involved in real estate investment, development, and property management worldwide. GTIS did not release purchase prices for the projects and sale prices are difficult to discern from public records in Texas.

The partnership between GTIS and Hines began last April when they paired up to buy 24 acres, also in Las Colinas, which Hines rezoned from commercial to 92 home sites while the land was in escrow. Hines developed the lots and recently delivered a first batch to Meritage Homes.

Most likely the partnership will have other ventures to announce in the near future.

“We think they [Hines] are great partners, and we are excited about Dallas-Fort Worth and Texas in general and are looking for more opportunities,” said Pristaw.

GTIS (formerly known as Goldentree Insite Partners) have also partnered with LGI Homes in Dallas and San Antonio to buy land to fuel LGI’s fast-selling growth.

Teresa Burney is a senior editor for Builder magazine. 

Learn more about markets featured in this article: Dallas, TX.