Leon Capital Group is turning the page on this year’s dismal multifamily market a few weeks early.
The firm’s multifamily arm landed $134 million in construction financing for three projects, including one in Dallas-Fort Worth.
Leon Multifamily secured a $33.5 million construction loan to build an apartment building in Mansfield, at Heritage Parkway and Miller Road, the firm said in a release. Broadway Bank is providing the financing. The exact address and number of units weren’t disclosed.
The firm also received $58.5 million from ACORE CAPITAL for a project in Morrisville, North Carolina, and $41.5 million from Alerus Financing for a project in Gilbert, Arizona.
In total, the construction loans will be used to develop 842 units. The debt per unit across the three markets averages out to $159,000 per unit.
The timing of the development is evidence of the firm’s “proactive and contrarian strategy,” Leon Multifamily President David Cocanougher said in the release.
“We believe the window to realize lower construction costs and deliver into a lower new supply environment is quickly closing,” he said.
Even though the Federal Reserve lowered interest rates in September, rates remain stubbornly high, making it difficult for developers to get projects off the ground.
Meanwhile, Dallas-Fort Worth’s multifamily market is experiencing a historic surge in supply.
As of mid-November, 38,640 units had been delivered in the metroplex this year, according to Partners Real Estate. As a result, rents have declined by more than 3 percent in the last year.
Leon Multifamily has delivered almost 2,300 units across seven properties in the last two years.
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