ACRES Lends $29M on Multifamily Property in Bozeman, Montana
By Cathy Cunningham June 4, 2021 1:36 pm
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ACRES Capital has closed a $29.2 million construction loan for the development of Babcock Apartments, an 80,000-square-foot multifamily property in Bozeman, Montana, Commercial Observer can first report.
The building, at 1612 and 1624 West Babcock Street, is being developed by Roundhouse Development, the largest multifamily developer in Montana and Idaho. It sits in a prime location; just west of downtown Bozeman, and half a mile from Montana State University.
George Smith Partners’ Jonathan Lee arranged the financing, while Chris Hetzel of ACRES’ Los Angeles office led the deal on behalf of the lender.
“As one of Montana’s fastest-growing areas, Gallatin County has seen a strong influx of residents from California, Utah, Texas, Washington and Colorado,” Mark Fogel, ACRES’ Chief Executive Officer and President, said of the market’s draw. “Bozeman has been a direct beneficiary of this growth and is bolstered by Montana State University, a division-one school that has recently undergone improvements and helps provide diversity of employment to the city. As more young professionals look to relocate to Bozeman, Babcock Apartments will provide a new housing option for those looking for high quality-of-life with excellent access to downtown.”
When construction wraps, Babcock Apartments will comprise 95 rental units and 2,300 square feet of ground-floor retail space. Building amenities are set to include a fitness center, a tenant lounge, open space common areas, individual storage units, and 105 parking spaces.
“From the get-go, the ACRES team has been aligned with our vision to put humanity into housing and focus intently on the resident experience,” Casey Lynch, the founder and CEO of Roundhouse, said. “This financing will allow us to utilize our local expertise to establish another successful multifamily development that will serve the Bozeman community for years to come.”
Bozeman has seen an influx of new residents since the COVID-19 pandemic, as well as companies putting down roots and establishing headquarters in the city. Only last week, cloud software company Snowflake announced its move to Bozeman from San Mateo, Calif.
The draw to the area isn’t hard to see, and residents at Babcock Apartments will have the benefits of living close to wide open spaces coupled with the conveniences of city life less than half a mile away. In addition to its proximity to Bozeman, the property sits close to the area’s big tourist attractions, such as Yellowstone National Park and Big Sky Resort.
“We were thrilled to work with the ACRES team on this transaction. They established themselves from the outset as they understood the demand in Bozeman, the housing shortage the city has experienced, and the need to bring on new units to alleviate the housing pressure,” Lee said. “From start to finish they led as a relationship lender who seamlessly and collaboratively worked with our client to close the transaction on a tight timeframe.”
Roundhouse has more than $1.1 billion in multifamily assets in its portfolio today, and 4,000 units under management or in its development pipeline.
