A rendering of the Leon Multifamily development slated for Mansfield, Texas.
Courtesy Leon Multifamily A rendering of the Leon Multifamily development slated for Mansfield, Texas.

While high interest rates, inflation, and escalating construction costs have prompted many multifamily developers to scale back, Leon Multifamily, a subsidiary of Leon Capital Group, has pushed forward to secure $134 million in construction financing within 30 days. The funding will develop three multifamily projects for a total of 842 units.

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

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

Secured from a combination of regional banks and non-bank financial institutions, $58.5 million from ACORE CAPITAL will develop a multifamily community in Morrisville, North Carolina; $41.5 million from Alerus Financial will develop a multifamily community in Gilbert, Arizona; and $33.5 million from Broadway Bank will develop a multifamily community in Mansfield, Texas.

While the industry has faced significant hurdles, including higher vacancy rates, slowing rent growth, and liquidity constraints, the firm is advancing confidently, Leon Multifamily says.

“Every developer is facing similar challenges, but value is created by skillfully navigating tough times,” says Blake Schroeder, executive managing director of Leon Multifamily.

Leon Multifamily remains steadfast, focusing on delivering high-quality assets in resilient markets such as Dallas-Fort Worth, Phoenix, and Raleigh-Durham, North Carolina.

Over the past two years, Leon Multifamily has initiated or completed nearly 2,300 units across seven developments. Since inception, it has strategically financed, developed, and sold more than 12,000 units.

Schroeder adds, “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.”