Leon Multifamily Secures $134M Financing for Sun Belt Developments
Construction loans closed within 30 days for communities in three states.
Dallas-based Leon Multifamily, a subsidiary of Leon Capital Group, has secured $134 million in construction financing for three projects in Arizona, North Carolina and Texas. The communities will total 842 units.
The financing for the three projects closed within 30 days. The largest loan is $58.5 million from ACORE Capital for a 303-unit property at 3000 Bearing Way in Morrisville, N.C. Morrisville is located in the Research Triangle in North Carolina, midway between Raleigh and Durham.
Alerus Financial is providing a $41.5 million loan for a 231-unit development at 3340 E. Warner Road in Gilbert, Ariz., in the Phoenix metro area.
Leon has also secured a $33.5 million loan from Broadway Bank for the third property, a 308-unit development at Heritage Parkway and Miller Road in Mansfield, Texas. Adjacent to Arlington, Texas, Mansfield is 20 miles from Fort Worth, Texas, and 30 miles from Dallas.
“Leon Multifamily has many long-standing partnerships with lenders, which underscores our ability to deliver successful projects and weather economic uncertainty,” Blake Schroeder, Leon Multifamily executive managing director, told Multi-Housing News. “By leveraging these strategic partnerships, maintaining a disciplined approach and embracing a bold vision, Leon Multifamily continues to capitalize on opportunities.”
David Cocanougher, president of Leon Multifamily, said the company expects to announce more multifamily construction starts in 2025.
“We see opportunity in the current market conditions,” Cocanougher told MHN. “By building now at more competitive costs and delivering into a tighter supply environment, we’re positioning ourselves for future rent growth and distinguishing ourselves as one of the few adding new supply to the market around 2027.”
Ground-up growth
Over the past two years, Leon Multifamily has initiated or completed nearly 2,300 units across seven developments. The firm’s properties are located in Arizona, Texas and North Carolina.
While other real estate investors are adopting a cautious approach through 2025, Cocanougher said Leon believes they will be able to take advantage of lower construction costs and deliver new housing in a lower supply environment.
“We’ve always been flexible because we control our own capital,” he said. “All of our pre-development costs come from internal capital. This allows us to move quickly and close on superior land in resilient markets like Dallas, Phoenix, and Raleigh-Durham.”
LMF Construction, a subsidiary of Leon, serves as the general contractor for all multifamily developments.
“With LMF Construction in-house, we are constantly in the market, monitoring costs,” Cocanougher said. “Right now, we’re seeing a dip in hard costs. By starting a project today, we’re aiming to hit the bottom of that cost curve.”
Founded in 2006 by Fernando De Leon, Leon Capital Group is a diversified holding company that has overseen more than $10 billion in private capital since its inception. In addition to real estate, the company’s portfolio includes healthcare, financial services and technology investments.
Last year, Leon Multifamily sold Soltra at San Tan Village, a 14-acre, 380-unit luxury multifamily community completed 2022 in Gilbert, Ariz., for $140 million.
