Florida Build-to-Rent Project Secures $ 71 Million Home Loan

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Dan Gorczycki, formerly Avison Young and now with TrueRate, has completed a $ 71.5 million revolving home loan for a build-to-rent project in Brandon, FL from Brandon Development Partners.

Corevest Finance is financing the horizontal and vertical construction of a townhouse project with 360 units on a plot of approximately 60 hectares. The revolving floating rate loan offers only full interest payments during its 30 month term.

The financing includes the first phase of a two-phase urban apartment development with 660 residential units. The property will be built in six sections. Amenities include a pool, fitness center, dog park, hiking trail, fire pits, and mixed-use buildings with shops.

Brandon is a submarket within Tampa-St. Petersburg, which had a booming housing market before Covid. After COVID-19, the area should have robust demand for townhouses, according to TrueRate.

Sudha Reddy, executive director of Haven Realty Capital, told GlobeSt.com that Tampa was one of the top markets for SFR development. Others were Phoenix, Las Vegas, Salt Lake City, Dallas, Houston and Austin, Atlanta, Nashville, Raleigh / Durham, Charlotte, Orlando and Jacksonville.

“Builders build in all of these markets for the same reason that SFR operators invest in them,” Reddy said. “All of these markets are therefore conducive to partnerships between builders and operators.”

With such strong growth, developers struggle to land in the market. When Brookfield Residential acquired Newland, one of the largest master plan community developers in the country, earlier this month, Tampa was one of nine markets it was given access to. The others were Dallas-Ft. Worth, Houston, Atlanta, Seattle-Tacoma, Portland, Raleigh-Durham, Wilmington and Charleston.

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