A
merican Realty Investors has secured a $27.5 million construction loan from an unnamed lender to build Mountain Creek, a 234-unit apartment complex in southwest Dallas. The loan carries an interest rate of SOFR plus 3.45 percent and matures in October 2026. The project is expected to be completed by 2026 at a cost of approximately $49.8 million, or around $213,000 per unit.
Despite high interest rates dampening multifamily development nationwide, the recent Fed rate cut has boosted optimism among developers and lenders. American Realty Investors' day-to-day operations are managed by Pillar Income Asset Management, which oversees most of its activities through Transcontinental Realty Investors, a subsidiary in which it holds an 80% stake.
Transcontinental's portfolio includes over one million square feet of office space, 2,328 multifamily units, and 1,843 acres of developed and undeveloped land. Its multifamily properties are 95% occupied, while office property occupancy stands at 48%. The company is also developing the Merano, a 216-unit project in McKinney, which is expected to be completed next year at a cost of around $52 million per unit.
In 2022, Transcontinental formed a joint venture with Australia's Macquarie Group, known as Victory Abode Apartments. The partnership offloaded 45 multifamily properties to private equity funds for $2 billion in June 2022.
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