Nitya Capital Closes Morgan Stanley Refinancing of 432-Unit Interlace Apartments in Dallas

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Nitya Capital

Aug 10, 2026, 07:00 ET

HOUSTON, Aug. 10, 2026 /PRNewswire/ -- Nitya Capital today announced the successful refinancing of Interlace Apartments, a 432-unit multifamily community in Dallas, Texas, with Morgan Stanley, completing a closely watched transaction following months of public speculation surrounding the property.

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Swapnil Agarwal, Founder & CEO of Nitya Capital
Swapnil Agarwal, Founder & CEO of Nitya Capital

The closing marks another milestone in Nitya Capital's broader effort to protect and strengthen its portfolio through one of the most challenging real estate capital markets environments in decades. Over the past two years, Nitya has executed approximately $1.5 billion of refinancings and major debt repayments, including a $700 million refinancing with Citi, a $218 million refinancing with Argentic, and the repayment of a $400 million Capital One credit facility, in addition to the now closed Interlace transaction. Reference articles below.

All of these transactions have been executed against a dramatically different financing environment from when many multifamily properties were acquired just a few years back. With interest rates remaining elevated and the U.S. 10-year Treasury near 4.7%, lenders have become significantly more selective and refinancing requirements substantially more stringent.

Against that backdrop, Nitya secured new institutional financing for the Interlace property at a double-digit debt yield, reflecting the substantial operating income and value created since its acquisition.

Recent media reports had identified Interlace as one of three Dallas–Fort Worth properties facing potential foreclosure. Interlace has now been successfully refinanced.

The closing is also emblematic of Nitya Capital's approach throughout the interest-rate cycle. Rather than prioritize sponsor economics, Nitya deferred substantial fees otherwise payable to the firm, contributed additional sponsor capital where required, and funded equity into multiple refinancings to safeguard its assets and investor capital. The strategy has required significant sponsor support while allowing the firm to continue working through individual asset-level challenges and preserve its broader portfolio.

"This is what execution looks like in a difficult market," said Swapnil Agarwal, Founder and CEO of Nitya Capital. "There has been no shortage of predictions about what would happen to multifamily owners as rates moved dramatically higher. We chose not to respond to the noise. We focused on our properties and our lenders, executing one transaction at a time. Nearly $1.5 billion of execution later, the results speak for themselves."

The Interlace refinancing involved additional complexity due to the property's Public Facility Corporation (PFC) structure. Nitya thanks One William Street Capital, the property's existing lender, for its patience and partnership throughout the process, and Morgan Stanley for working collaboratively through the structure to bring the refinancing to completion.

From Resilience to Growth

Having spent the past several years strengthening and protecting its existing portfolio, Nitya Capital has now returned to growth.

In 2026 alone, the firm has acquired approximately 1,300 multifamily units and approximately 1,300 more units under contract, positioning Nitya to capitalize on opportunities created by the current dislocation in U.S. multifamily real estate.

"Surviving a cycle is one thing. Emerging from it in a position to grow is another," Agarwal said. "We believe some of the most compelling multifamily opportunities of this generation are being created right now."

About Nitya Capital

Founded in 2013, Nitya Capital is a vertically integrated real estate investment and operating firm headquartered in Houston, Texas, focused primarily on multifamily housing across high-growth U.S. markets.

Since inception, Nitya Capital has executed more than 300 real estate transactions representing approximately $10 billion in value. Across its realized investment history, the firm has generated more than a 20% net IRR to investors with zero realized principal losses.

Today, Nitya Capital is both strengthening its existing portfolio and pursuing a new generation of multifamily investments created by the current market dislocation.

For more information, visit www.nityacapital.com.

Media Contact:

Nitya Capital Media Communications

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Reference

SOURCE Nitya Capital