Acore Capital Lends $59M on Raleigh-Durham Apartments Build
By Andrew Coen December 16, 2024 8:00 am
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Leon Multifamily has secured $58.5 million of construction financing to build an apartment community in North Carolina’s Raleigh-Durham area, Commercial Observer has learned.
Acore Capital provided the loan on Leon Multifamily’s planned 303-unit rental housing project at 3000 Bearing Way in Morrisville, N.C., scheduled to break ground soon. The property just off Airport Boulevard is 2.5 miles from Raleigh-Durham International Airport and 14 miles northwest of Downtown Raleigh.
Scott Durco, director at Acore Capital, said a strong sponsorship in Leon Multifamily coupled with growing population trends in the Raleigh-Durham area made the deal attractive from a lending perspective. He also noted that the project should benefit from construction of multifamily projects in Raleigh-Durham slowing down of late.
“Raleigh-Durham has been one of the highest growth markets in the apartment space in terms of absorption, and we think that is going to continue since there is so much going on here from the health care sector and all the universities,” Durco told CO. “New apartment supply in the market is tapering off substantially over the next couple of years and we think that this project is going to be very well positioned to deliver into a pretty supply constrained time in the market.”
The North Carolina loan was part of a busy 30-day stretch for Leon Multifamily, a subsidiary of Leon Capital Group, as it secured $134 million of construction debt for three projects totaling 842 units.
Leon also landed a $41.5 million construction loan from Alerus Financial for a planned 231-unit multifamily project at 3340 East Warner Road in Gilbert, Ariz., a suburb of Phoenix.
Broadway Bank also supplied $33.5 million of construction financing for Leon’s planned 308-unit apartment complex in Mansfield, Texas, near Dallas at the intersection of Heritage Parkway and Miller Road.
“We believe the window to realize lower construction costs and deliver into a lower new supply environment is quickly closing, making our ability to execute these transactions with speed and certainty all the more important,” David Cocanougher, president of Leon Multifamily, said in a statement. “We remain committed to strategically growing our portfolio despite these tough market conditions.”
Blake Schroeder, executive managing director of Leon Multifamily, said in a statement that “by building now at more competitive costs and delivering into a tighter supply environment, we are positioning Leon Multifamily for future rent growth, while distinguishing our business as one of the few players adding new supply to the market.”
Andrew Coen can be reached at acoen@commercialobserver.com
