Chicago-based financial advisory firm Tempo Capital Group has arranged a $42 million construction loan for an undisclosed Texas-based builder.
The builder is acquiring 45 acres of vacant land to develop and construct a 287-unit multifamily rental community in Conroe, according to a press release.
The development will feature single-level detached cottages, duplexes and two-story signature patio homes set in tree-lined boulevards. Common areas will include a pool, fitness center and clubhouse.
“I’m excited to provide the developer funding for a truly innovative housing concept. The different product types cater to attainable and diverse housing needs all within a single, well-managed, amenitized community,” said Tempo Capital founder Michael Berke.
“Our client has a successful track record developing such communities and achieves strong demand for their product. Market studies indicate lease-up to be 20 units per month with a projected completion of 18 months,” Berke added. “The builder will stabilize and then seek a disposition of the community. We value our relationship and continue to expand our footprint through satisfied borrowers.”
The horizontal multifamily rental market continues to demonstrate significant consumer demand in the Houston metro and other markets nationally as supply continues to lag, the release noted.
“As build-to-rent continues its success, both builders and capital are finding creative ways to work together and achieve outstanding results,” Berke said.