New York, NY – November 9, 2015
– Colliers International announced today 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,’ a 200-unit, market rate, multi-family development in the fast-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 also just 45 minutes from San Antonio, with its strategic 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.
In addition, 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 residential 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. In addition to having interior-finish quality well exceeding that of market peer competitors, and a compelling amenity package including a large fitness room and large swimming pool, the project will make use of expansive lawns where residents can gather and families can play.
“River House is an exceptionally compelling project at this juncture in the real estate cycle,” added Ahrens, a Director with Colliers International. “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 million - $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 with another firm if the right partner/equity investor can be identified.
The Donnelly/Ahrens team is part of Colliers International’s New York Capital Markets division. Their focus is on debt and equity solutions for real estate properties across all asset classes and throughout the United States as well as internationally. They are currently financing projects in the Bahamas, St. Lucia, and Costa Rica.