Colliers on the Hunt for $47M on Behalf of Texas Multifamily Developer
Colliers International’s structured finance team has been exclusively retained to arrange $47 million in debt and equity for the construction of a 30-story multifamily property in San Antonio, Texas, Commercial Observer can first report.
The brokerage’s Jeffrey Donnelly, an executive director, and Ulrike Ahrens, a director, are working on behalf of the project’s sponsor, Dallas-based JMJ Development, to secure the financing by the second quarter of 2016.
Tim Barton, the chief executive officer of JMJ, told CO that the 201-unit development—dubbed Villita Tower—will be unique to the downtown San Antonio market because “there are no high-rises like this being built in the city.” The development site is located on the San Antonio River Walk, a network of walkways along the banks of the San Antonio River.
“San Antonio is a growing city, and there is a big demand for product like this,” he said. “Here in Texas the Dallas market has gotten a bit saturated.”
Once completed, Villita Tower will house a mix of market-rate rental studios and one- and two-bedroom pads. The property will provide tenants with automated parking for up to 230 cars. Additionally, there will be 12,000 square feet of commercial space, which will house three restaurants and a coffee shop, Mr. Barton noted.
“This is not our clients’ first rodeo,” Ms. Ahrens said. “They have executed an impressive array of high-end, luxury residential projects throughout the country. Furthermore, they are also a talented and visionary developer of luxury resort hotels of the absolute highest caliber—including the Rosewood Mayakoba in Riviera Maya, Mexico—a stunning execution of a challenging development and an iconic resort property.”
JMJ has completed multifamily properties across the country, including the Gates Residences, a 132,000-square-foot luxury condominium in Avon, Colo., and King’s Gate, an 870-acre single-family development in San Antonio. The firm is also constructing the Biltmore Ridges, a 2,000-square-acre residential and commercial development in Nashville, Tenn.
Villita Tower has a 24-month construction timeline, which will commence once financing is secured.
“The offering has gotten a very strong response in the debt and equity markets with our initial ovations,” Mr. Donnelly said via email. “We think we have a strong case for a Housing and Urban Development 221d4 execution, which would make an already strong pro forma even more compelling. San Antonio is a strong and desirable market for bank balance sheet lenders and insurance companies to lend into, so we’ll have lots of options there, too.
“Multifamily continues to be the darling asset class among equity investors,” he added. “Lots of interest on that front, and we’re still in the very early days with this offering. In fact, we’ve already gotten viable equity proposals to complete the capital stack. We are excited, and we think this financing will come together quickly.”