Siguler Guff, Benefit Street Partners Provide $114M Construction Loan for BTR Deals

HMF Americana has secured $113.5 million in construction financing to build The Cottage Green Tomball and The Cottage Green Simpsonville, a pair of build-to-rent communities that will bring 575 units to cities near Houston and Greenville, S.C., Commercial Observer can first report. 

Siguler Guff & Company, a New York-based real estate investment firm with $18 billion of assets under management, and Benefit Street Partners originated the construction financing. The loan is structured as an $83.8 million senior note and a $29.7 million B-piece. It carries an 18-month term and includes two six-month extensions.  

Sterling Realty Capital arranged the transaction. 

Adam Domanico, a principal at Siguler Guff, said in a statement that the deal plays into his firm’s strategy to back experienced sponsors in markets with solid fundamentals and strong multifamily demand. 

“We are excited to extend our partnership with BSP to support HMF Americana’s Cottage Green platform expansion,” said Domanico. “We believe thoughtfully designed build-to-rent housing will remain a compelling solution for the evolving needs of renters.”

HMF Americana is a Texas-based multifamily development firm that has so far developed several properties under the Cottage Green brand of single-family rental housing. Once completed, the Cottage Green Tomball and The Cottage Green Simpsonville will be the brand’s fifth and sixth developments. 

The Cottage Green Tomball will be located in Tomball, Texas, a city about 34 miles north of Downtown Houston. The Cottage Green Simpsonville will be set in Simpsonville, a small city of about 23,000 residents roughly 15 miles south of Greenville. 

The developments will each include one- to -three-bedroom multifamily homes with dedicated greenspace, on-site parking and a pool. 

Brian Pascus can be reached at bpascus@commercialobserver.com.