Dallas-based Leon Multifamily Secures Financing for 3 Development Projects in 3 States

The solution to the affordable housing crisis, we’ve been told, is simple: build more housing. Dallas-based Leon Multifamily, a subsidiary of Leon Capital Group, appears to have received the memo. 

The company secured $134 million in construction financing over a 30-day period for three development projects, one of which is in Mansfield. 

While many real estate investors are treading cautiously heading into 2025, Leon Multifamily is taking a more aggressive approach to new apartment development, officials with the development company said in a press release. 

“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,” said David Cocanougher, president of Leon Multifamily.

Three Developments, Three States, 30 Days

Leon Multifamily’s planned projects, financed by a combination of regional banks and non-bank financial institutions, include:

• $58.5 million from ACORE Capital for a multifamily development in Raleigh-Durham, N.C.

• $41.5 million from Alerus Financial for a multifamily development in Phoenix, Ariz.

• $33.5 million from Broadway Bank for a multifamily development in Dallas-Fort Worth. Plans call for a 308-unit development at Heritage Parkway and Miller Road in Mansfield, about 20 miles from Fort Worth and 30 miles from Dallas.

“We are proud of our team’s ability not only to successfully finance these projects but also to do so on an impressive timeline,” Cocanougher said. “While many real estate investors are adopting a cautious approach through 2025, we are embracing our proactive and contrarian strategy.”

High interest rates, inflation, and escalating construction costs have prompted many multifamily developers to scale back, Leon Multifamily officials said in a press release.  The sector has faced significant hurdles, including higher vacancy rates, slowing rent growth, and liquidity constraints.

Despite economic headwinds, Leon Multifamily has, over the past two years, initiated or completed seven developments comprising nearly 2,300 units. Since its inception, Leon Multifamily has strategically financed, developed, and sold more than 12,000 units.

Positioned for Growth

Leon Multifamily’s “contrarian strategy” of building during a downturn provides distinct advantages, company officials said. As labor and construction costs show signs of moderation, the company anticipates delivering its projects into a supply-constrained market, well-positioned for future rent growth.

“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,” said Blake Schroeder, Leon Multifamily executive managing director. 

Leon Multifamily has a long-standing partnership with Marble Capital, which shares the developer’s forward-looking vision and remains committed to supporting its developments, officials said. Since 2016, Marble Capital has raised approximately $2 billion, solidifying its reputation as a major market player.

“We remain committed to strategically growing our portfolio despite these tough market conditions,” Cocanougher said. 

The company’s portfolio spans real estate, healthcare, financial services, and technology, with investments across multiple geographies and sectors.