Motorists zipping down the Dallas North Tollway shouldn't have any trouble locating the exit for Addison.

Just look for all the construction.

A building boom in the Dallas suburb will bring thousands of new apartments plus additional office and retail space. Much of the construction is in the Addison Circle district on the tollway near Arapaho Road.

MICHAEL MULVEY/DMN

Fairfield Properties is building more than 400 apartments on Quorum Drive. It's a larger-than-usual project for the developer: 'Typically, we build projects that are closer to 325 or 350 units,' says Fairfield's Steven Stamos.

Two large developments on the west side of the tollway in Addison Circle will add luxury apartments and a midrise office building.

Phoenix-based SNK Realty Group is building 272 rental units in its Allegro apartment complex. That development will cost more than $28 million, based on building permit values.

"We are looking at the fall to begin delivering the first units," said Derrick Turnbull in SNK's Dallas office. "We have some pretty high-profile deals in California, but this will be our premier one in Texas."

The four-story complex will include ground-floor retail and parking in large garages.

"We do have room for a second phase," Mr. Turnbull said.

For a suburban location, Addison offers apartment developers some of the same features that tenants find appealing in closer-in markets, he said.

Opus West

Opus West's Two Addison Circle, in an artist's rendering, is under construction. The $23 million building will cost contain 198,000 square feet of office space.

"If you compare it to Uptown, it's not as urban, but compared to almost everywhere else, it is," Mr. Turnbull said. "The town of Addison has done a nice job of creating an urban environment where people want to live."

Addison also hopes to attract more office tenants with a building just getting started on the tollway.

Opus West Corp. is developing its six-story Two Addison Circle office project next door to SNK's new apartments. The building will cost more than $23 million and contain 198,000 square feet of office space.

The first tenants will move in late this year, said Opus' Geoff Meyer.

"As far as the location, we think it's a great site," he said. "It offers outstanding tollway visibility for the tenant seeking a high-profile location, it's easily accessible and you've got all the amenities that Addison Circle has to offer right out your door."

Apartment developer Fairfield Properties is building more than 400 apartments in Addison Circle on Quorum Drive. The project will cost more than $30 million.

The appeal of the Addison location prompted the developer to do a larger project.

"Typically, we build projects that are closer to 325 or 350 units," said Fairfield's Steven Stamos. "There are not many development sites in Addison Circle."

Mr. Stamos said the first apartments will open in the complex in June.

STEVE BROWN/Staff

SNK Realty Group's Allegro complex: 'We have some pretty high-profile deals in California, but this will be our premier one in Texas,' says Derrick Turnbull.

Another developer – Icon Partners – has received zoning to build 362 multifamily units on nearby Addison Road.

Addison has a population of about 15,000. But that's likely to increase significantly during the next few years.

"Yes, we do have a boom going on," said Carmen Moran, Addison's development services director.

At less than 5 square miles, Addison has only a few vacant sites left to develop.

But developers are still adding projects and are looking at older properties to recycle.

"I would have told you a year or two ago we were about to build out," Ms. Moran said. "We are a first-tier suburb – an in-fill location.

"And we are right now in redevelopment mode."

The biggest of Addison's redevelopments is set to start later this year.

Apartment builder United Dominion Realty plans to demolish thousands of aging rental units on the city's west side. In their place, United Dominion ultimately will build 6,000 residential units, plus almost 1 million square feet of office and retail space.

"They tell us it could cost $1 billion," Ms. Moran said.

So far, the Addison market has consumed all the apartments that developers have thrown at it.

Only about 5 percent of the rental units in that area are vacant, according to Greg Willett, vice president of research for Carrollton-based apartment consultant M/PF YieldStar.

"The occupancy performance has held basically stable over the course of the past year," Mr. Willett said.

"Rents average $813 per month, with the neighborhood getting a pretty healthy premium over the $749 D-FW norm."