NYC developer and general contractor, Park7 Group, owes at least two subcontractors $4M in unpaid construction work since July 2020, after being hired to work on the student housing project known as Park Place Denton, located 40 miles north of Dallas.
The new luxury student housing project scales 5 stories with 155 units, according to mechanics lien claims. Mechanics liens are placed on property to prevent the sale or refinancing of a property until they are removed, which helps force payment to claimants.
Park7 Group has already completed the construction of a sister development known as Park Place Arlington. That 298-unit student housing project is 45 miles to the south of the Denton location. Construction of the Park Place Arlington broke ground back in May of 2019.
Two Contractors Owed $4M at Park Place Denton
The two contractors are allegedly owed $4.06 million for work taking place at Park Place Denton, located at 1501 Scripture St., Denton, TX.
On July 16, 2020, Legacy Precast filed a lien valued at $3.27 million, which accounts for 80% of the total funds still owed to the two contractors on this job site. Legacy Precast’s lien affidavit states that the subcontractor constructed the housing project’s new parking garage after working on the project between January and May of 2020.
A second subcontractor, Oscar Orduno, Inc., claims they are owed $795K from Park7 Group. On July 13, 2020, Oscar Orduno filed their lien claim after working on the project between January and March. According to Oscar Orduno’s lien filing, the subcontractor executed all shoring systems and aggregate piers at the property.
The total value of Oscar Orduno’s contract with Park7 Group was $1.6M, according to the lien affidavit. Oscar Orduno’s lien claim accounts 47% of the total contract with Park7 Group.
According to the Dallas Observer, neighbors of the property vocally opposed the development, calling it “out of character with the neighborhood” and citing Park7’s “lack of transparency.”
Park7 Group Behind Student Housing Project in Nearby Arlington, TX
Park7 Group’s nearby student housing project in Arlington, TX was completed in summer 2020 and has begun to lease units to students entering the fall semester.
This property, known as Park Place Arlington, is also a luxury student housing facility that specifically services students attending the University of Texas at Arlington.
Humphreys & Partners Architects designed the property, which also houses 9,000 square feet of ground-floor retail space. The Park Place Arlington facility has a variety of amenities, such as a half-court basketball court, volleyball court, movie theater, pool, study courtyards, two-story fitness center, resident clubroom, and a spa.
Dallas-Fort Worth Apartment Construction Growth
As of August 2020, the Dallas-Fort Worth metro area has topped apartment construction growth in 2020 with over 19K new apartments slated to be completed by the end of the year.
This is now the third consecutive year in which the DFW metro area has topped apartment construction growth. As reported by RentCafe, 117K new residents moved to the DFW metro area between 2018 and 2019.