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Multifamily funding deal for shipping container developer

SG Blocks, a designer of container-based structures, announced it has partnered with Manhattan-based Palladium Management on multifamily and mixed-use developments in the Greater New York area.

SG Blocks investor Dillon Hill Capital, a New York based financial advisory, management consulting and investment management firm, will provide capital on a deal by deal basis.

“Teaming with Palladium will allow the SG Blocks Building System to be deployed throughout new markets, which will save time and money for developers and end users” said Paul Galvin, chairman and CEO of SG Blocks.

Turning shipping containers into buildings has become big business
Turning shipping containers into buildings has become big business

“The combination of our three firms will help unleash the value of under-utilized land leveraging the speed and efficiency of modular construction and our environmentally friendly repurposed containers.”

Through the partnership, Palladium will identify projects, invest in and raise funds for multi-family and mixed-used developments, which will be built using SG Blocks’ prefabricated, highly sophisticated, engineered building system.

“SG Blocks has already established a track record with the most discerning of end users. We look forward to further showcasing these benefits to the development world at large,” said David Roth, principal and founding partner of Palladium Management. Working in tandem with Dillon Hill, Palladium will review and underwrite other market opportunities as well.

“I am enthusiastic about the applications in the urban multifamily property space,” stated Bruce Grossman, CEO of Dillon Hill Capital. “In addition, I see numerous exciting applications for commercial, industrial, and philanthropic projects.”

Earlier this month, SG Blocks  announced that it had completed 21 units for a new development in Nashville, Tennessee, in three months.

Called oneC1TY, the development is a multi-building community that caters to the healthcare, life sciences and technology sectors. The structures built by SG Blocks, were shipped, erected and turned over to oneC1TY’s master developer, Cambridge Holdings, Inc. for completion. C1TY BLOX will house commercial properties including retail stores, restaurants and other businesses.

The company has been at the forefront of the sector which has seen demand rising among developers in New York. Galvin sees containers blending more seamlessly into the city’s fabric. “Can you imagine building a brownstone out of these?” he said. “You can do it in three days.”

 

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