Tower Capital successfully arranged $41,000,000 in non-recourse construction financing for a 246-unit build-to-rent community in Huntsville, AL.
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.
Despite the strong market fundamentals and strong sponsorship, financing presented multiple challenges. While the market is growing at a rapid pace, Huntsville is outside the Top 100 MSA by population which eliminated a handful of lenders automatically. In addition to market size, Q3/2022 was an uncertain economic environment that resulted from the Federal Reserve’s efforts to curb inflation. This caused numerous lenders to pull out of the market and stop lending until the uncertainty cleared. Tower leveraged its knowledge of and relationships with the remaining and most active lenders in the BTR space to locate a bank willing to execute a construction loan in a smaller market during an uncertain economic time.
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.
Tower Capital has successfully closed more than $900 million in construction financing and joint venture equity for 33 build-to-rent communities totaling over 5,000 units and continues to be a leader in the marketplace with another $400 million of projects in the pipeline. The firm’s pipeline of projects spans multiple states including in Arizona, Texas, Alabama, North Carolina, Colorado and Indiana.
