American Realty Investors secured a construction loan to build a $50 million multifamily project in Dallas.
The Dallas-based firm landed a $27.5 million construction loan to build Mountain Creek, according to a recent SEC filing. Interest on the loan is SOFR plus 3.45 percent. The loan matures in October 2026. The lender wasn’t identified in the filing. The firm is traded on the New York Stock Exchange under the symbol ARL.
Mountain Creek is a 234-unit apartment complex that will be located at 5595 Mountain Creek Parkway in southwest Dallas. It’s expected to be completed in 2026. It is estimated to cost $49.8 million or about $213,000 per unit.
High interest rates have put a damper on multifamily development nationwide. However, the Fed’s rate cut last month — and the hope for more — is already boosting optimism in developers and lenders.
American Realty Investors’ day-to-day operations are managed by Pillar Income Asset Management, and it conducts most of its operations through Transcontinental Realty Investors, of which it owns about 80 percent.
Transcontinental’s portfolio includes four office properties spanning more than one million square feet, plus 2,328 multifamily units and 1,843 acres of developed and undeveloped land, according to the filing.
Its multifamily properties are 95 percent occupied, while occupancy at its office properties are at 48 percent, according to a Nov. 7 earnings call.
Transcontinental is also developing the Merano, a 216-unit property in the booming Dallas suburb of McKinney. The project is expected to be completed next year and will cost almost $52 million, about $240,000 per unit
Australia’s Macquarie Group formed a joint venture with Transcontinental in 2022, known as Victory Abode Apartments. Transcontinental and subsidiary Southern Properties Capital contributed more than 50 apartment properties to the partnership’s portfolio; Macquarie made an unspecified “substantial equity investment.”
The joint venture offloaded 45 multifamily properties to unnamed private equity funds for $2 billion in June 2022.
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