Single Family Build-to-Rent Community

  • Capital Source: Institutional Private Equity
  • Purpose of Loan: Ground Up Development
  • Location: Huntsville, AL
  • Loan Amount: $14,733,333

Transaction Details:

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.

About Tower Capital:

Tower Capital was founded to enable owners of commercial real estate to achieve their investment goals with the least amount of time, energy, and cost, while creating surety of execution and peace of mind.

Established in 2015 and headquartered in Phoenix, Arizona, Tower Capital provides customized structured financing to investors throughout the United States. We specialize in debt and equity placement ranging from $2 Million to $300 Million and have financed over $2 Billion for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.