Truist Financial Arranges $39M Loan for Texas Acquisition
- Dec 20, 2019
Truist Financial Corp. has arranged a $39.15 million acquisition loan for an undisclosed buyer to purchase a 312-unit community in Dallas. The seller was also undisclosed and the loan’s sponsor was only identified as a New York-based private equity firm.
The 10-year Fannie Mae loan with four years interest only followed by a 30-year amortization schedule was used to purchase Reserve at White Rock, a multifamily community located at 9201 Garland Road.
Built in two phases and completed in 2000, Reserve at White Rock comprises a mix of one-, two- and three-bedroom units. The community also offers building amenities including a fitness center, a swimming pool, a steam room, a social lounge with a kitchen, a business center, a theater center, a courtyard, and a community grill and barbecue area. According to Yardi Matrix data, the property was 95.2 percent occupied as of November. The average rent at Reserve at White Rock is $1,272.
According to Evan Hom, the managing director in Truist’s New York, the loan was a complex transaction with many moving parts and deadlines.
Dallas’ multifamily market is still posting strong numbers, according to a summer market analysis by Yardi Matrix. The Dallas-Fort Worth area saw rents increase 3 percent year-over-year, hitting $1,202, and is expected to rise as high as 3.3 percent for the entirety of 2019, according to the report.
The local economy is staying strong with the 120,000 jobs gained in the Dallas-Fort Worth market in the last 12 months ending in June, boosting housing demand. The strong market fundamentals have led to robust development, with 10,612 units added to Dallas-Fort Worth in the first seven months of the year. But there’s more on the way, as the metro area had 44,200 units underway as of July, with half of them expected to come online by the end of the year.