L
eon Capital Group is taking a proactive approach to the multifamily market, securing $134 million in construction financing for three projects just weeks before the end of the year. The firm's multifamily arm, Leon Multifamily, has landed significant funding from various lenders, including Broadway Bank and ACORE CAPITAL.

    The deals include a $33.5 million loan from Broadway Bank to build an apartment complex in Mansfield, Texas, as well as $58.5 million from ACORE CAPITAL for a project in Morrisville, North Carolina, and $41.5 million from Alerus Financing for a development in Gilbert, Arizona. These construction loans will support the creation of 842 new units across the three markets.

    The average debt per unit comes out to $159,000, highlighting the competitive nature of the multifamily market. According to Leon Multifamily President David Cocanougher, the firm's strategy is designed to capitalize on lower construction costs and a reduced supply environment before it's too late. Despite recent interest rate cuts, rates remain high, making it challenging for developers to launch new projects.

    The Dallas-Fort Worth multifamily market is experiencing an unprecedented surge in supply, with over 38,600 units delivered this year alone. As a result, rents have declined by more than 3% in the past year. Leon Multifamily has successfully delivered nearly 2,300 units across seven properties in the last two years, positioning itself as a major player in the market.