Provident Realty Advisors Scores Built-to-Rent Loan in DFW
The suburbs of the Dallas-Fort Worth Metroplex continue to attract construction loans.
Provident Realty Advisors is set to start construction on a massive built-to-rent community near Rockwall. Provident scored a $24 million loan from Trez Capital to begin construction on the first 281 of 1,000 planned homes, according to a news release.
That’s about $85,000 per home, but it wasn’t clear if the loan is Dallas-based Provident’s sole source of funding for the first phase of the development, called Hillstead. The homes are scheduled to be delivered by spring of 2024.
Perry Homes, Drees Homes, Highland Homes and American Legend Homes are set to build in the development, according to the release.
The community will be located about 28 miles from downtown Dallas near Lake Ray Hubbard, on a 540-acre tract of land north of Rockwall. The parcel is at the intersection of State Highway 205 and County Road 483.
Provident Realty was first formed in Dallas in the early ’90s and has developed over $5 billion worth of projects, according to its website. Trez Capital’s Dallas office has funded over $6 billion in real estate loans and is lending to Provident for the fifth time, according to the release.
Rockwall has been popular with home developers of late as Shaddock Homes recently announced a 490 home community called Homestead located on 196 acres near the intersection of FM549 and FM1139.
Built-to-rent developments have been booming across Texas in recent years as people seek single-family homes in the suburbs without the financial burden of owning a home. Dallas-Fort Worth and Houston-area suburbs have been particularly popular built-to-rent hot spots for developers.
Dallas was ranked first in the country in built-to-rent construction in 2022, with 3,000 homes completed, according to a study by RentCafe. The number of build-to-rent homes in North Texas doubled in five years, the study found.
