Luxury resi is coming to the Dallas suburb of Garland after Anthem Development secured $63 million in capital financing from Bank OZK.
The Lofts iThirty will consist of 340 high-end apartments located on 10.4 acres at the northwest corner of Broadway and Interstate 30, according to a company announcement. The loan works out to a little over $185,000 per unit.
Construction is set to begin this month with completion scheduled for 2025.
The undeveloped tract sits adjacent to the interstate and a Dallas Area Rapid Transit center. The City of Garland held multiple planning meetings over the past two years trying to decide what to do with the parcel that is about 13 miles from downtown Dallas.
Lofts iThirty will include five, four-story buildings and high-end amenities such-as resort style pools, pet spa and park, lounges, outdoor kitchens and two 24-hour fitness centers.
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Nova Capital negotiated financing on behalf of Anthem and secured funds through Bank OZK. It is the second joint venture between Anthem and Bank OZK in the past 14 months.
“As the market continues to evolve, financing deals will be more difficult as many lenders are on the sidelines or providing conservative financing terms. Equity groups and lenders are being very conservative with their underwriting assumptions and cautious with new investments,” said Steven Yazdani of Nova Capital. “Strong, experienced sponsors like Anthem Development, who have transactions that underwrite using conservative assumptions, will still be able to get their transactions capitalized.”
Dallas-based Anthem Development formed less than two years ago and is run by Ross Frankfurt. He is the grandson of David Frankfurt, who once spearheaded Frankfurt Properties, a prominent player in the Dallas real estate scene since the 1930s. Anthem already has hundreds of apartment units in the pipeline across Carrollton, Grand Prairie, Dallas, Trophy Club and Sachse.
While single-family home construction has slowed recently as demand declines and interest rates are in flux, multifamily construction, especially in suburban areas, is up nearly 10 percent, according to a report from the National Association of Homebuilders. Dallas-Fort Worth leads the country in apartment building with nearly 60,000 units in the pipeline, according to data from RealPage.