Colliers International announced that its structured finance team of Jeffrey Donnelly and Ulrike Ahrens has been retained as exclusive advisor by Austin, Texas-based developer Stone Development Group, Inc. to source $22 million in debt and equity for the construction of ‘River House.’
The 200-unit, market rate, multi-family development will be built in the growing city of Seguin, Texas.
Seguin has its own significant manufacturing base, most notably Continental AG (Motorola), CMC Steel, Tyson Foods, and Texas Power Systems (CAT).
The city is 45 minutes from San Antonio, with its location on the Interstate 10 corridor to Houston, and just south of the Interstate 35 corridor to Austin contributing as a catalyst for continued growth.
Stone Development Group has a wide range of construction experience throughout Texas, and across several asset types.
In addition to building the 200-unit residential complex on the 10-acre site, Stone is also completing all the roads and horizontal infrastructure for the entire 80-acre mixed-use development site within which the project resides.
“This assignment is the perfect cocktail of experienced developer, strong and growing submarket, well-conceived project design, and robust return profile in a market with substantial housing needs,” said Donnelly, an executive director with Colliers International, who noted that the project will consist of six, three-story structures arrayed across the 10-acre site.
Ahrens, a director with Colliers International, said, “Even at this early stage, we have strong interest from several national bank balance sheet lenders, as well as an apparent fit for the project as a HUD 221d execution.”
Donnelly expects the financing to be finalized by the first quarter of 2016, with the team’s focus now on raising $3.5 – $4 million in equity. “We have the mandate not only for a preferred equity solution, but also for the option of a more active, participating joint venture equity partner,” he said, adding that Stone is open to co-developing the project.