Dallas, August 22, 2025
News Summary
Fairstead has purchased the 167-unit Royal Crest apartments in Dallas for an extensive $24 million rehabilitation. With renovations commencing in August, improvements will modernize a project that has not seen significant upgrades since its construction in 1969. The redevelopment plan, supported by various financial partners, aims to maintain affordability under the Section 8 housing program while enhancing living conditions for residents. The project reflects the ongoing challenges and transitions within the Dallas-Fort Worth multifamily market.
Dallas — Fairstead has acquired the 167-unit Royal Crest apartments at 3558 Willhurt Ave. in Dallas and plans an approximately $24 million rehabilitation of the Section 8 subsidized housing complex, with renovations that began in August 2025 and are expected to continue through the fall of 2026.
Key project details
The Royal Crest redevelopment will focus on extensive upgrades to an apartment community that has not seen significant improvements since its construction in 1969. The property consists of 167 units and serves residents under the Section 8 program. Financial partners in the project include the U.S. Department of Housing and Urban Development (HUD) and Housing Options Inc., a subsidiary of the Dallas Housing Authority.
Permanent financing for the redevelopment is coming from Cedar Rapids Bank and Trust, while a construction loan was issued by Capital One National Association. The tax credit equity syndicator for the project is Hudson Housing Capital. Fairstead has indicated that the scope of work and the financing structure are intended to preserve long-term affordable housing at Royal Crest.
Timeline and scope
Renovations began in August 2025 and are scheduled to continue through the fall of 2026. The planned work covers interior and exterior building improvements, systems upgrades, and other capital-intensive repairs to bring older units up to current standards while maintaining affordability under the Section 8 program. The project budget for these upgrades is estimated at $24 million.
Context: DFW multifamily market
The Royal Crest redevelopment comes as the Dallas-Fort Worth (DFW) multifamily market experiences a period of transition. Capital markets are reported to be tight, contributing to a slowdown in new construction and delayed decision-making influenced by national and global events. Despite these constraints, market fundamentals in DFW remain resilient.
From 2020 to 2023, the DFW area added nearly 500,000 people, the largest population gain of any U.S. metro area over that span. Job growth in the region has risen by 11 percent since 2020, which has supported increased rental demand. Rising homeownership costs have also kept renting relatively more affordable for many households, sustaining demand for rental housing. Projections anticipate about 11.5 percent population growth in DFW over the next five years.
Market observers expect a severe deceleration in new apartment deliveries beginning next year due to tighter capital conditions. Newly built, high-quality assets in some cases are selling at prices roughly 30 percent below their 2021 peaks, reflecting valuation adjustments in the sector. Nevertheless, DFW’s underlying population and employment trends are supporting a resurgence in values in some segments.
Related industry activity
Investment activity in distressed and underperforming multifamily assets is ongoing. One example is S2 Capital, which closed its S2 Real Estate Fund II with $373 million in capital commitments aimed at distressed multifamily properties. Fund II received institutional backing from U.S. and European investors, has already deployed more than 60 percent of its commitments across 14 assets in nine markets, and focuses on repositioning assets through renovations and operational improvements. Since its founding in 2012, S2 has acquired more than 50,000 units in high-growth markets.
In broader recognition of the market, Dallas was ranked as the No. 1 market for real estate investment in 2025 by a national industry ranking, reflecting continued investor interest amid shifting conditions.
Fairstead portfolio and local presence
Fairstead operates a national portfolio of over 25,000 affordable homes across 28 states, including 1,166 units in Texas. The Royal Crest project fits within Fairstead’s broader strategy of acquiring and rehabilitating affordable housing assets to extend the useful life of properties and preserve subsidized housing stock.
What this means locally
The Royal Crest rehabilitation aims to preserve long-term affordable housing in a market where rental demand remains strong but new supply is slowing. By committing public and private financing and tax credit equity to the project, stakeholders are advancing a substantial renovation program that will update aging infrastructure, maintain affordability under Section 8, and seek to stabilize occupancy and living conditions for residents through late 2026 and beyond.
FAQ
What is the scale of the Royal Crest renovation?
The renovation budget is approximately $24 million for upgrades across the 167-unit property. Work began in August 2025 and is expected to continue through fall 2026.
Who is financing the project?
Permanent financing is provided by Cedar Rapids Bank and Trust, with a construction loan from Capital One National Association. The U.S. Department of Housing and Urban Development and Housing Options Inc. are project partners, and Hudson Housing Capital is the tax credit equity syndicator.
Will the property remain affordable?
Royal Crest operates under the Section 8 program and the renovation plan is intended to preserve its subsidized status and continue serving residents eligible for housing assistance.
How does this fit into the wider DFW market?
The project aligns with broader trends of slower new construction and tight capital markets, while responding to sustained rental demand supported by population and job growth in the DFW region.
| Feature | Value | Visual |
|---|---|---|
| Units | 167 | |
| Estimated Rehab Cost | $24,000,000 | |
| Start Date | August 2025 | |
| Expected Completion | Fall 2026 |
Deeper Dive: News & Info About This Topic
HERE Resources
Fairstead Acquires Royal Crest to Upgrade Affordable Housing in Dallas
Additional Resources
- D Magazine: Multifamily Market Inflection Point
- Dallas Innovates: S2 Capital Fund
- Multifamily Dive: Distress Fund Transactions
- Multi-Housing News: National Multifamily Report
- Business Wire: Dallas Apartment Acquisition
- Wikipedia: Multifamily Housing
- Google Search: Multifamily Real Estate News
- Google Scholar: Multifamily Housing
- Encyclopedia Britannica: Multifamily Housing
- Google News: Multifamily Housing
Author: STAFF HERE DALLAS WRITER
DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
