Kairoi Residential’s apartment development in Oak Cliff scored a refinancing deal in a sign that lenders could be warming up with rent growth on the horizon.
The 352-unit complex it delivered in 2023 landed $62 million in fresh financing, according to a release from Sunrise Realty Trust, the lender on the deal. That works out to $176,000 per unit.
Sunrise Realty Trust, an affiliate of TCG Real Estate, is providing $46.5 million of the loan; the rest was syndicated to an affiliate on the TCG Real Estate platform, the release said.
The Class A property, at 1207 North Zang Boulevard, is located across the street from Methodist Dallas Medical Center and was built on the site of El Fenix restaurant. It features a rooftop pool and a remote work lounge with private meeting rooms.
San Antonio-based developer Kairoi is known for its upscale apartments. In Dallas, it also built the 297-unit Amelia at Farmers Market, at 999 South Harwood Street, and the 146-unit Selene, at 2620 Maple Avenue, next to the Crescent. Its fourth project is under construction at 4939 North Central Expressway in Knox-Henderson.
Since interest rates began trending downward, lending has been a little easier to come by.
Plus, the bottom of this cycle for Dallas-Fort Worth’s multifamily market is in the rearview mirror. The Metroplex has survived a historic deluge of deliveries, which peaked last year, and the attendant pressure on rental rates and vacancy levels.
Nearly 39,000 units were delivered in DFW from the beginning of last year to mid-November, an increase from the year before, when 36,209 were completed, according to Partners Real Estate.
About 22,000 units are expected to be delivered this year. The narrowing of the pipeline is expected to shrink vacancy levels and elevate rental rates.
Class A properties have shown more resilience amid this period of growth, Partners said.
