3650 REIT Provides $50M Construction Loan for Alabama Apartments Project
By Andrew Coen May 5, 2023 12:03 pm
reprints![](https://commercialobserver.com/wp-content/uploads/sites/3/2023/05/Gabriel-1.jpg?quality=80&w=755)
New York-based family office Hillcrest Acquisitions has nabbed $49.5 million of construction financing to complete an Alabama multifamily development, Commercial Observer has learned.
Lender 3650 REIT supplied the three-year loan on Hillcrest’s The Gabriel, a planned 288-unit property in Madison, Ala. The transaction for the project located just outside Alabama’s most populous city, Huntsville, originated from 3650’s bridge- and event-driven investment platform.
“We experienced a strong and active first quarter of the year and have continued that momentum with the origination of The Gabriel loan and the further buildout of a growing pipeline of origination opportunities,” Jonathan Roth, co-founder and managing partner at 3650 REIT, said in a statement. “The Gabriel project represents the opportunity for us to invest in a well-located asset in one of the strongest and fastest-expanding defense and STEM employment hubs in the country, making it an ideal housing option for residents in the area.”
Eastern Union’s Marc Tropp arranged the transaction.
Located at 1542 Balch Road, The Gabriel project is about 20 percent complete since breaking ground in the third quarter of 2022 and will be delivered in phases, with full completion expected by July 2024. The development will consist of 10 three-story, garden-style apartment buildings with 520 parking spaces. Its amenities will include a pool, cabanas, grilling/picnic areas, a fitness center, a playground, a dog park, a pet spa, an auto care center, two electric car charging stations and gated access.
The project was designed by Williams Blackstock Architects, with Capstone Building Corporation serving as general contractor.
“We are thrilled to be closing our first loan with 3650 REIT and look forward to this being the first of many loans together,” Moshe Herskovich, vice president of Hillcrest Acquisitions, said in a statement. “We strive to build long-term relationships with our lenders and find that 3650 shares our perspective on doing business.”
The Gabriel deal continued a very active beginning of 2023 for 3650 REIT, which closed seven loans in the first quarter totaling $240 million to go along with roughly $13.6 billion of loans it had in servicing. The firm, which was founded in 2017 by Roth, Toby Cobb and Justin Kennedy, launched a preferred equity investment program in late 2021. It also launched a transitional lending platform early this year, led by Nishant Nadella.
“Today’s challenging market environment has enabled 3650 to step in to fill the gap and provide capital to borrowers that require a reliable source of financing,” Roth said.
Andrew Coen can be reached at acoen@commercialobserver.com