Dallas-based American Realty Investors has secured a construction loan to build a large multifamily apartment complex.
The 234-unit complex will be located at 5595 Mountain Creek Parkway in southwest Dallas. The apartment is expected to be completed in 2026.
American Realty Investors, Inc., which owns, operates, and develops properties throughout the southern United States, has obtained a $27.5 million construction loan from an undisclosed lender to support the construction of Mountain Creek, a nearly $50 million multifamily apartment building.
American Realty is a publicly traded company listed on the New York Stock Exchange under the ticker ARL. According to the firm’s latest quarterly report ending September 30, 2024, the construction loan will be charged the Secured Overnight Financing Rate (SOFR) plus 3.45% and matures on October 20, 2026. SOFR stood at 4.6% as of November 8.
American Realty, Inc.’s share price has fallen substantially in 2024. As of mid-day on November 12, shares of ARL were down over 18% year-to-date.
Multifamily construction has struggled in recent months. In July, multifamily-building starts were 22% lower than the same month the year prior and down over 40% from their peak in April 2022.
Historically high interest rates have contributed to slowing activity; however, in September, the Federal Reserve began unwinding its aggressive tightening campaign. While still high, rates now sit at 4.75%, down from 5.5%.
The multifamily housing industry in North Texas has also experienced difficulty filling roles.
Earlier this month, The Dallas Express reported that the national nonprofit Entryway partnered with the local real estate industry to provide career training, employment, and housing opportunities to at-risk individuals in the metroplex. The program is intended to help residents and their families in need while simultaneously addressing the lack of qualified talent at apartment buildings in the City.
