City National Bank of Florida Provides $47M Construction Loan for NC Multifamily
The One at Hope Mills will bring 360 one-,two, and three-bedroom units to the military town
One Real Estate Investment (OREI), a Miami-based real estate development and management firm, has secured a $47 million construction loan for The One at Hope Mills, a 360-unit multifamily development in Fayetteville, N.C., Commercial Observer can first report.
Berkadia’s South Florida team arranged the financing, led by the team of Senior Managing Director Mitch Sinberg and Managing Directors Brad Williamson, Scott Wadler and Matt Robbins. The floating-rate construction loan was provided by a joint partnership between City National Bank of Florida, the state’s second-largest financial institution, and Abanca, a Spanish bank based in Galicia.
Construction is expected to begin in the third quarter of 2023 and be completed by the second half of 2024.
“This project represents a unique and very exciting opportunity that capitalizes on continued growth in the market,” said Jeronimo Hirschfeld, president and CEO of OREI. “We look forward to expanding our presence throughout the Southeast region with additional development opportunities in high-growth markets with strong fundamentals.”
The One at Hope Mills will be built at 3680 Elk Road in the Southwest Cumberland Community of North Carolina. The area is near the famous Fort Liberty (formerly Fort Bragg), which houses more than 29,000 U.S. military personnel, and Pope Field (formerly Pope Air Force Base). Fayetteville and Cumberland County are known for its hospitality to U.S. soldiers and their families — having declared itself a “Soldiers’ Sanctuary” in 2008 — and locals have gone so far as to offer free child care and job placement to soldiers’ spouses in recent years.
The new multifamily development is expected to benefit from the expansion of the Interstate 295 Outer Loop highway, which links Fayetteville to Fort Liberty and promises to improve the area’s status as an emerging logistics corridor, according to Berkadia’s Williamson.
An Amazon (AMZN) fulfillment center is expected to open this year and bring more than 500 jobs to the local area.
“The sponsor’s investment thesis is driven by the favorable rental market in Fayetteville, which experienced 16.8 percent year-over-year rent growth, while the vacancy rate has compressed due to limited supply and a strong job growth,” said Williamson in a prepared statement.
The One at Hope Mills will comprise 11 three-story garden-style rental buildings along with a clubhouse on a 46-acre property six miles from Downtown Fayetteville and three miles from Fayetteville Regional Airport. Featuring one-, two- and three-bedroom units, the development will also offer a community pool, outdoor cabanas with televisions, a game room with billiards and shuffleboard, and a fitness center.
The project is OREI’s second residential development in the Fayetteville metropolitan area.
Founded in 2001 in Miami and targeting high-growth markets across the Sun Belt, OREI holds a rental portfolio of garden-style rental buildings valued at $1.5 billion. The firm broke ground on more than 800 units in 2022 and is expected to bring more than 1,500 units to the market in 2023.
Brian Pascus can be reached at email@example.com