Pearlmark closes on $11.1M subordinated debt investment for multifamily development in North Dallas

The company invested in a a 336-unit multifamily property in the growing North Texas market

Pearlmark managing director Bill Swackhamer (LinkedIn, iStock)
Pearlmark managing director Bill Swackhamer (LinkedIn, iStock)

Another North Texas multifamily project is on the way after Chicago-based investor Pearlmark closed on a debt investment for a 336-unit multifamily property in Dallas.

The development, Resia Dallas National, at North Oak Cliff/West Dallas, will include 17 affordable units, and will be directly across the street from Dallas National Golf Club with access to highways and a large employment base.

Pearlmark is making an $11.1 million subordinated debt investment for the project, it said in a statement. The investment was made on behalf of Pearlmark Mezzanine Realty Partners V, L.P., and the senior loan was provided by Fifth Third Bank. Resia served as both the borrower and the sponsor.

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“We are very glad to be making this preferred equity investment with Resia, a top-quality sponsor, in a growth market with solid fundamentals,” said Bill Swackhamer, Managing Director of Pearlmark, who arranged the transaction.

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The course of the North Texas market’s growth and potential has been shaping in recent years, with 2022 specifically making it one of the largest development centers in the U.S.

Just this year, the North Texas area led all U.S. metros in multifamily investment with $29.5 billion in volume over the past four quarters, and investment in the area accounted for 7.8 percent of the U.S. total, according to CBRE’s first-quarter 2022 U.S. Multifamily Figures report. Dallas alone had 3,600 completions in the quarter, with a net absorption of 4,600 units, followed by Fort Worth with a net absorption of 2,100 units.

Pearlmark said its investment in the deal reflects the company’s desire to create value for its investors across a range of investments, and its collaboration with Resia takes advantage of the opportunity presented by the north Texas market.

Pearlmark has sponsored more than a dozen real estate equity and debt investment programs since 1996, and completed 560 real estate equity and debt transactions on behalf of investors, representing $5.3 billion in equity capital commitments and $13.7 billion in gross investment value, according to its statement.

“Resia has proven itself extremely capable of building very high-quality apartment product cost effectively to offer affordable rents for working professionals and families,” said Doug Lyons, managing principal and head of debt investments for Pearlmark.