Tower Capital and its affiliates were successful in introducing its client to an institutional private equity group which resulted in $14,733,333 in joint venture equity for the development of a 247-unit single family rental community. The equity will be behind 70% LTC debt fund financing which Tower Capital will be arranging.
The subject property is located in the booming development hub of Huntsville, Alabama which is known as “Rocket City”, USA. Huntsville, AL has some unique economic drivers that have made it the fastest growing city in Alabama and is projected to surpass Birmingham as the largest in Alabama by 2025. This community will feature an office/clubhouse with a fitness center, gated entry, resort style swimming pool and heated spa, covered ramada with barbeque grills and attached and detached garage units. The unit mix consist of 1, 2 & 3 bedroom floor plans with an average unit size of 975 square feet. Unit amenities will include 9-foot ceilings with ceiling fans, wood style vinyl flooring, custom cabinetry, quartz counters, stainless steel appliances, full-size washer and dryer unit, walk-in closets, and private back yards with patio areas.
The single family build-for-rent product in a tertiary market presented challenges to the capital markets due to the lack of proven product in the market. Tower was able to source a small private equity firm who was familiar with the market, comfortable with the basis and comfortable with the barriers to entry and strong market demand for the product.
This project will be the 4th build-to-rent community for Tower’s client.
