Tower Capital, a leading provider of build-to-rent construction financing, has secured $8.835 million in construction financing for a 25-unit build-to-rent townhome community in the Fort Collins MSA. The subject property is strategically positioned in an “A” location within Fort Collins, a rapidly growing city with significant demand for BTR communities. With limited competition in the market, this project is expected to meet strong pent-up demand from renters seeking high-quality housing alternatives to traditional multifamily options. The target demographic includes young professionals, Colorado State University students, families, and retirees desiring the convenience of rental living combined with the benefits of single-family townhomes. The Fort Collins market offers significant advantages for this type of development. Nestled in the foothills of the Rocky Mountains, the city is home to major employers such as Hewlett-Packard, AMD, and Intel, along with Colorado State University, ensuring a steady influx of students, faculty, and skilled graduates. This highly educated workforce drives demand for upscale rental housing, while the city’s ongoing investment in infrastructure, sustainability, and public transportation further enhances its appeal.
The Sponsor is a highly experienced, locally based development firm with substantial track record in the multifamily and townhome space with numerous completed projects and full-cycle investments under their belt. The Sponsor intends to leverage the success of this project into other future developments throughout strategic markets across Colorado.
Tower Capital was able to secure the financing via a local bank despite persistent challenging market conditions. Many lenders remain on the sidelines as it relates to deploying construction financing, but Tower was able to get lenders comfortable with the project and Sponsor. As a result, the Tower team was able to capture over ten (10) competitive term sheets for its client and ultimately secure 70% LTC financing at an attractive rate and minimal fees.
This financing is the latest in a series of successful transactions for Tower Capital in the build-to-rent space. The company has capitalized over $2.3 billion in build-to-rent projects for 49 communities encompassing more than 8,500 units across the country.
