The Chisholm Trail Parkway is a 27.6 stretch of Toll road
that will help connect Cleburne and Granbury to Downtown Fort Worth. This stretch of highway was built to increase
the accessibility and consequently the desirability of housing that it
influences. The (NTTA) North Texas
Tollway Authority has been constructing this $1.4 Billion project since 2010
and expects to finish sometime in Spring of 2014.
How will the Chisholm Trail Parkway affect
the value of my house?
When asking how this project will affect the surrounding
communities one should realize that the NTTA is a private company. All of their projects are NOT a part of the
state highway system. Even though the
NTTA is sanctioned by the Texas state government to acquire land and build
roadways on it, all of the land that is built upon is granted to the NTTA by
partnering cities. They do not collect
tax revenue for their roadways and funding for their projects are generated
through bonds called “turnpike revenue bonds”.
All collected tolls go to help repay those bonds.
What does that have to do with
property value?
Land for these projects is granted to the NTTA by partnering
cities. This means that partnering
cities are giving up taxable land, rolling the dice that the toll road will
increase taxable revenue and property value in the adjacent communities enough
to offset the donated land and then produce a profit for the city. This additional tax revenue can be attributed
to developers moving to areas that are now more easily accessible. Commercial developers that improve the
quality of life in a once desolate area by opening new shopping and dining
areas. And residential developers that
are wanting to build subdivisions and capitalize on increasing property values
for land in an area with diminishing supply.
Besides Burleson and Cleburne, what
areas are going to be most affected?
Como/Chamberlain Arlington Heights: The
area known as Como and Chamberlain Arlington Heights has been a transitional
area for years now and there is good reason for it. Just a few blocks from each other, you can
find housing for $18/Sf to well over $160 /Sf. I would expect this are to blow up in the
next 3-5 years. This area is nestled
between two higher end subdivisions that contain generally the same type of
older frame housing. It wouldn't surprise me if developers already have plans to swoop in and buy up any and all
supply of the 2/1 beaters in this area directly from the homeowners and fully
rehab them and rent them out at reasonable rates. This is a great place to buy and hold.
Benbrook and Wedgwood: Benbrook is a small city know for its great
schools and safe communities. It’s kinda like that movie Pleasantville but in
SW Tarrant County. The trip from
Benbrook or the super large Fort Worth subdivision of Wedgwood to Downtown Fort
Worth in the morning can take commuters 20-25 min. The new Tollway should cut the commute in
half allowing top professionals and executives live in these outlier areas that
are already built out, therefore, potentially driving up prices in the near
future.
Downtown Fort Worth: If
you are at all familiar with Downtown Fort Worth, you are familiar with the
free parking and year round twinkle lights that help make this pedestrian
friendly city the welcoming place that it is.
I think the development of the Chisholm Trail Parkway will only build
upon the attraction of downtown. The Trinity
River Vision is a remarkable project that is already underway that will completely
transform downtown Fort Worth. Watch this
video to learn more. (
click
here)
Please feel free to comment and let me know if there is
anything in particular that I should write about for my next blog entry. As always, if you need investment property or
investor financing for your next investment deal, call me and I’d love to help.
JD Castillo
214-650-5493
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