Hunt Capital JV Secures Financing for Dallas Project
The developer obtained $86 million from multiple funding sources.
A joint venture of Hunt Capital Partners, Bonner Carrington and Sycamore Strategies has secured $86.3 million in total financing for Cypress Creek Apartment Homes at Montfort Drive, an upcoming 168-unit mixed-income community in Dallas.
Funds include $20 million in federal 9 percent LIHTC financing, awarded by the Texas Department of Housing and Community Affairs and syndicated by Hunt Capital Partners; $32.5 million in construction financing and $22.1 million in permanent financing issued by East West Bank; $11.7 million soft loan, provided by The City of Dallas; Walker Settlement Vouchers provided by Dallas Housing Authority’s; funds from HUD’s Community Development Block Grant Disaster Relief Program.
Total development costs were listed as $58.5 million as of November 2023.
READ ALSO: How Teamwork Can Push Affordable Housing Projects Across the Finish Line
Moss and Associates and IFC-Construction are building Cypress Creek, while Arrive Architecture Group provided design services and Pape Dawson served as the civil engineer. The companies broke ground this March and construction is expected to reach completion in the second quarter of 2026. Bonner Carrington will manage the property.
Cypress Creek will feature 116 units reserved for residents earning up to 30, 60, 70 and 80 percent of the Area Median Income. Of these, nine units will be restricted for people suffering from mental and/or physical disabilities, while four units will be available for individuals experiencing homelessness. The remaining 52 units will be market rate.
What’s more, 41 of the units at the 30 percent AMI level will utilize the Walker Settlement Voucher program, which provides housing opportunities for African American households to reside in high opportunity areas. Currently, the program’s waitlist has more than 15,000 eligible households.
Cypress Creek is slated to encompass one- to three-bedroom floorplans averaging 851 square feet. Units will feature balconies and patio spaces, water-efficient plumbing fixtures, as well as central air conditioning, among others. The 262,465-square-foot development is also set to include a business center, clubhouse, swimming pool and gym.
Apartment Life, a faith-based, non-profit organization, will provide complimentary community services, such as exercise classes, health fairs, food banks and tax preparation assistance, as well as social events.
Located at 14119 Montfort Drive, the development is some 2 miles from Interstate 635 and roughly 13 miles north of downtown Dallas. Several parks and eateries are within 2 miles.
Building affordable housing in the Metroplex
As of 2022, The National Low Income Housing Coalition reported there were only 17 available affordable rental units for every 100 households at or below extremely low income in the Metroplex. NLIHC revealed a total deficit of 423,605 affordable units.
In February this year, The Dallas City Council finalized the $1.25 billion capital bond package and allocated $82 million for housing and homelessness. Despite falling short compared to Dallas Housing Coalition’s initial request, the allocation marked a 78 percent increase over the city’s total housing bonds dating back 17 years, as Dallas approved $46 million in bond funds for affordable housing since 2006.
As of August, the Metroplex’s pipeline consisted of nearly 5,900 units across 29 fully affordable projects, Yardi Matrix data shows. Developers completed 583 units in fully affordable communities in Dallas-Fort Worth year-to-date through July.
Earlier this year, Dominium reopened a 280-unit fully affordable property in Arlington, Texas. The developer implemented a $9.3 million renovation program after purchasing Rosemont at Mayfield Villas from Goodman Real Estate in 2021.
