$12,130,000 Construction Financing for 49 Townhomes for Rent; Phoenix, AZ

Transaction Description:

George Smith Partners secured $25,590,000 of stretch senior financing for the construction for a community of 90 modular homes for rent in Asheville, NC. GSP quickly identified a debt fund that suited the client’s needs by arranging an in-person meeting to discuss the project. The Lender recognized the strength of the Asheville market.

The modular homes will be constructed off-site and set onto finished lots over 36 months. The community features spacious floor plans and a common area for future residents. This is the first build-to-rent community for the client and we expect there to be many more.

Transaction Description:

George Smith Partners is pleased to announce the successful arrangement of a $46,800,000 construction loan for the development of a 247-unit build-to-rent community in Foley, Alabama. Through GSP’s strong relationship with the bank, GSP was able to successfully negotiate a 65% LTC, Non-recourse loan to fund parri-passu with the JV’s equity at WSJ Prime + 1.25% through construction. Pricing reduces and leverage increases to 70% LTC upon preset leasing hurdles.

Transaction Description:

George Smith Partners is pleased to announce the arrangement of $23,750,000 of LP JV-Equity for the ground-up construction of a 155-unit build-for-rent community in Loudon County, Virginia. The Sponsor originally engaged GSP to capitalize the land from purchase to finalization of the site plan that would be sold to a homebuilder. As headwinds from rising interest rates started affecting homebuilders’ price indications, the Sponsor decided to pivot into developing all 155 units as rental units with a Limited Partner. Through GSP’s deep relationships and the Sponsor’s expertise in development, the transaction changed in scope and direction ending in a great partnership and transaction for the Sponsor.

Transaction Description:

George Smith Partners successfully advised on $23,000,000 in construction financing and $9,800,000 in JV Equity for the development of a 108-unit built-to-rent community in Charlotte, NC. The Project features 108 attached single-family homes situated atop a 13.5-acre site. The Site is located just seven miles outside of downtown Charlotte and less than 2 miles from UNC Charlotte. The houses have private entrances, individual backyards and feature shared amenities including a pool, jacuzzi, clubhouse, fitness facility, grilling area, pet park, and game room.

GSP worked through several strategies with the Sponsor to source the non-recourse financing terms and joint-venture equity partner for the ground-up built-to-rent community. The Sponsor chose a joint-venture partner that GSP had introduced to the sponsors on a previous deal. GSP sourced several highly reliable lender options, and the Sponsor ultimately went with a lender headquartered in Charlotte that provided strong terms and would keep the loan on their balance sheet.

The Sponsor projects vertical development to be completed by late 2023 and lease-up to be finalized by Q2 2024.

Transaction Description:

George Smith Partners successfully arranged a total of $46,890,000 in non-recourse debt and joint venture equity financing for the ground-up development of a single-family build-to-rent community in Phoenix, AZ. The Project spans approximately 14 acres and will feature 185 units across 150 stand-alone residential buildings located just 15 minutes west of Downtown Phoenix. The financing capitalized the acquisition of the development and related construction costs.

The Sponsor, a top tier homebuilder based in the Southwest, identified the site as an ideal candidate for re-entitlement to residential, and worked alongside the City to fast-track the change of use. The development team recognized the top-tier investment potential of the site given that build-to-rent product has been the fastest growing asset class in the U.S. housing market. Demand has grown exponentially as new ground-up single-family rental communities in the Phoenix area are not only averaging high absorption rates, but they are also achieving 42% rent premiums over neighboring garden-style apartments. GSP was able to identify a non-recourse construction lender with strong local knowledge that understood the high value of the re-entitled land, the strong local need for rental housing, as well as the Sponsor and joint venture equity partner’s extensive background and expertise in the BTR space.

Transaction Description:

George Smith Partners arranged $47,500,000 in construction financing for the development of a single-family build-to-rent community in La Quinta, within Southern California’s Coachella Valley on behalf of Shopoff Realty Investments. Spanning 18 acres, the Project features 131 units, averaging approximately 2,000 SF per unit. The Sponsor completed entitlements on the infill site over the last few years and secured the financing to commence construction.

Build-to-rent communities have gained significant traction due to, on average, high absorption rates and attractive rental premiums over comparative products. Demand has grown significantly, making it the fastest growing asset class in the U.S. housing market. The Sponsor, a best-in-class developer based in Southern California, recognized the opportunity to capitalize on the booming asset class. GSP was able to identify a lender who understood the investment potential of the high-growth submarket, as well as the Sponsor’s strong local knowledge and expertise in the BTR industry.