LVL29, the tallest residential highrise in Plano, Texas, faces a hefty mechanics lien worth over $8 million from general contractor AECOM Hunt.
AECOM Hunt, the original contractor on the construction project, filed the sizable mechanics lien August 14, 2020, claiming unpaid bills from the owner, NE West Legacy, LP.
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According to the mechanics lien claim, NE West Legacy contracted AECOM Hunt to provide “all labor and materials required to construct the Legacy West Tower residential tower and all common areas, parking and amenities associated therewith.”
A mechanics lien, also known as a construction lien, is a tool that contractors use to recover unpaid wages on a construction project. They give contractors leverage by encumbering the property, making it almost impossible to sell unless the contractor gets paid.
LVL29 is a luxury multifamily development located at 6000 Columbus Ave in Legacy West, a business and cultural district of Plano, Texas. Construction began in April 2017, and the development opened its doors in late 2019.
Since ground was broken on the record-breaking tower, NE Development and Love Funding were able to secure an $87.3 million construction loan from the U.S. Department of Housing and Urban Development, one of the agency’s largest ever.
LVL29 houses 328 spacious units, ranging in ~700 ft2 to ~3,600 ft2, along with penthouses on the top floor and private parking. Humphreys and Partners was the architect on the project.
Coronavirus Pushes DFW Residents to the Outskirts
The coronavirus pandemic has begun causing a potentially long-term shift in the Dallas Fort-Worth housing market, sparking a migration to low-density suburban areas and away from apartments in high-density urban areas.
Elements like teleworking and social distancing have caused many buyers to reconsider their preferred living environment, and a high number of them are looking at houses rather than high rises.
Additionally, COVID-19 has shifted Texas into a strong sellers market for real estate. According to Jeanie Marten of Jeanie Martin Real Estate, “People are fighting over houses again, multiple offers. The sellers are reaping the benefits right now.”
Rent prices are also gradually falling in the Dallas metro area, although Plano still has the most expensive average rent prices. Interestingly, Business Journals found a slowdown in multifamily building permits and construction starts since February.