NXT Capital has closed a $61 million loan to refinance a 400-unit, Class A, mid-rise apartment community in Dallas.
The property is located on the Trinity Strand hike/bike trail in the Dallas Design District. In addition to bike storage, community amenities include:
- two swimming pools
- three courtyards with fire pits
- resident lounge and game room
- controlled-access garage
The Dallas refinancing transaction comes less than a month after NXT Capital arranged a $29 million first mortgage loan for the purchase of a 250-unit, Class B apartment complex in the growing Dallas suburb of Plano, Texas. That property was located a half-mile from US-75, an interstate that connects residents to greater Dallas.
In October of last year, NXT Capital closed a $25 million first mortgage to finance the acquisition of a 252-unit, Class B+ multifamily community in Dallas. The property was located one mile north of Interstate 30 and three miles from downtown Dallas.
Growing Multifamily Market
It’s not a surprise that NXT Capital, which provides non-recourse floating rate first mortgages of $15 million to $75 million on value-add transactions, is busy in the Dallas area. Boosted by the strong and expanding economy and growing population in North Texas, the Dallas-Fort Worth multifamily market has been has been a stable and relatively safe investment bet, according to a recent market report by Yardi Matrix. The report noted about $3.8 billion in multifamily assets were sold in 2018 through October with North Dallas and the Dallas suburbs attracting the most capital in the 12 months ending October 2018. The market has also had a building boom with nearly 75,000 apartments added since 2015 and another 42,500 units under construction as of November.