Sycamore Strategies Cypress Creek Multifamily Project Awarded $20M in Tax Credit Financing

Staff Reports

A Montfort Drive multifamily project north of the Dallas Galleria that will offer mixed-income housing and shelter for the formerly homeless will open in early 2026, officials announced recently.

Sycamore Strategies’ Zach Krochtengel, Hunt Capital Partners, and Bonner Carrington were awarded $20 million in Low Income Housing Tax Credit financing for the 168-unit mixed-income apartment complex at 14119 Montfort, Business Wire reported in late July. 

In addition to the LIHTC financing, East West Bank provided $32.5 million in construction financing and $22.1 million in permanent financing. The City of Dallas offered a $11.7 million soft loan and the Dallas Housing Authority provided housing vouchers. 

Although the project is called Cypress Creek Apartment Homes, it’s not to be confused with the controversial Cypress Creek at Forest Lane development in Lake Highlands. 

Attorney William Roth, who owns an adjacent office building near the Lake Highlands project on North Central Expressway, filed a lawsuit in December claiming deed restrictions prohibit multifamily use on the site. At the time, attorney Philip Kingston said the legal action was an attack on affordable housing. 

CandysDirt.com reached out to Krochtengel last week and he said he and his partners are “still trying to figure out” the next steps with the Lake Highlands project. 

The developer said he’s also “trying to get to the closing table” with plans for mixed-income apartments at the former Cabana Hotel.

Cypress Creek Apartment Homes 

Confused? Let’s get back to the Cypress Creek Apartment Homes on Montfort. 

The “affordable mixed mixed-income housing community will introduce new quality housing options for families in Dallas,” Business Wire reports. 

“The community [comprises] a single four-story residential building complete with an attached four-story parking garage,” states a July 30 article. “Construction has commenced and the community will be opening in Q2 of 2026.”

“Cypress Creek Apartment Homes will welcome residents of various income levels and offer an inclusive community where they can prosper in a high opportunity area,” said Hunt Capital Partners Senior Director Acquisitions Omar Chaudhry in the Business Wire report. 

The housing mix includes 92 one-bedroom, 64 two-bedroom, and 12 three-bedroom apartment homes for residents of all ages and income levels. 

Out of the 168 units, 116 will be reserved for residents earning up to 30%, 60%, 70%, and 80% of the Area Median Income, while the remaining units will be offered at market rate. Nine of the units will be designed for and marketed to those with mental and/or physical disabilities and four will be marketed to individuals experiencing homelessness. 

Cypress Creek received targeted funding from the U.S. Department of Housing and Urban Development through the Community Development Block Grant Disaster Relief program, which ensures that housing is available to low- and extremely low-income renter households in Dallas, according to Business Wire. 

Addressing Housing Demand

Forty-one of the homes at the 30% AMI level will utilize vouchers from the Walker Settlement Voucher program, which the Dallas Housing Authority administers, Business Wire reports. The WSV program offers housing opportunities to African American households to live in high-opportunity areas. This initiative addresses the pressing housing demand, evident from a waitlist of over 15,000 eligible households.

“Building diverse communities through quality housing solutions is not just about providing shelter; it’s about creating opportunities for connection and growth,” Chaudhry said. “Cypress Creek Apartment Homes will welcome residents of various income levels and offer an inclusive community where they can prosper in a high-opportunity area. Together with Bonner Carrington and Sycamore Strategies, we’re investing in a stronger Dallas.”

Cypress Creek is being co-developed by Bonner Carrington and Sycamore Strategies. Moss and Associates will construct the community in cooperation with IFC-Construction. The architect is Arrive Architecture Group and the civil engineer is Pape Dawson. Bonner Carrington Property Management will serve as property manager.