The Falcon Lakes Apartments, ticketed for an April 2003 delivery, are going up on 17.8 acres at the southwest corner of Sublet Road and Texas 287. Jonnie Pardue, executive vice president of Dallas-based Malone Mortgage Co., tells GlobeSt.com that the loan carries an interest rate of 7%. The financing was provided through HUD's 221 (d)(4) full insurance Multifamily Accelerated Processing program. The term is 40 years plus the construction period, says Pardue, a specialist for FHA multifamily loans.
The new community consists of 11 buildings, swimming pool and spa, clubhouse with fitness center and 40 mini storage units. It also represents the sole asset of Falcon Lakes Arlington Ltd. although its investment backers have interests in about 1,000 units in the Dallas-Fort Worth metroplex, according to Pardue. KSNG Architects Inc. of Dallas designed the residential community.
The region's multifamily market has been in the winner's circle for some time. Investors' interest remains high and construction has slowed to deliver a relatively balanced supply and demand across the board. In the coming year, just 9,500 units will come on line, a decrease of 25% from the number coming to market last year, says Marcus & Millichap Real Estate Investment Brokerage Co.
The firm's researchers team predict overall vacancy will rise 1.5% to 7% before the year closes. Nonetheless, the multifamily market remains a hot topic for the investment crowd although it's "poised to cool off," says Christopher Thomson, the firm's regional manager of the Dallas and Austin offices. "However, apartment investors around the country who've been scouring the metroplex for product don't seem to mind." He says the interest in multifamily is not so much "white-hot market conditions" as it is "an indicator of poor performance by other property types.
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