Colliers International structured finance team has been retained to source $47 million in debt and equity for a Texas residential project.
Jeffrey Donnelly and Ulrike Ahrens will act as exclusive advisor to Dallas, Texas-based developer JMJ Development to source finance for the construction of Villita Tower, a 30-story, 201-unit, market rate multi-family residential development in supply-constrained San Antonio, Texas.
San Antonio is the 7th largest city in the United States, and ranks 10th fastest nationwide in jobs growth at 3.2 percent this past year.
San Antonio’s growth has been fueled by the biosciences, healthcare, aerospace, information technologies, and green technologies.
Villita Tower capitalizes on the tight rental market of San Antonio, but also seeks to deliver a unique and luxury product that will set a new bar in downtown San Antonio.
The project sponsor, JMJ Development and its partners, led by principal Tim Barton, has executed a wide range of mid-rise and high-rise residential projects throughout Texas, California, Florida, and Massachusetts over the last 20 plus years.
“In assessing projects, clients often talk about so-called “in-fill” locations all the time,” said Donnelly, Executive Director with Colliers International. “Rarely do we encounter a site as rare and compelling as Villita Tower.
“Right at San Antonio’s iconic River Walk on the San Antonio River, the tower will have views of the downtown cityscape. Restaurants and a strong amenity offering will make this an unbeatable proposition. This will be the ‘it’ residence in all of downtown San Antonio. We are confident the project’s 201 units will lease up immediately.”
“This is not our clients’ first rodeo,” added Ahrens, a Director with Colliers International. “They have executed an impressive array of high-end, luxury residential projects throughout the country.”
Donnelly expects the financing to be finalized by the second quarter of 2016.
“The offering has gotten a very strong response in the debt and equity markets with our initial ovations. We think we have a strong case for a HUD 221d4 execution, which would make an already strong pro forma even more compelling,ˮ he added.
“San Antonio is a strong and desirable market for bank balance sheet lenders and insurance companies to lend into, so we’ll have considerable options there, too. “Multi-family continues to be the darling asset class among equity investors, interest there as well.”