San Antonio, TX According to Colliers International, its structured finance team of Jeffrey Donnelly and Ulrike Ahrens has been retained as exclusive advisor by Dallas, Texas-based developer JMJ Development to source $47 million in debt and equity for the construction of ‘Villita Tower,’ a 30-story, 201-unit, market rate multi-family residential development.
San Antonio is the 7th largest city in the United States, and like the other major Texas MSAs, has been putting up strong numbers in job growth, ranking 10th fastest nationwide in jobs growth at 3.2 percent this past year. San Antonio unemployment sits at only 3.9 percent. San Antonio’s growth has been fueled by the biosciences, healthcare, aerospace, information technologies, and green technologies, and is therefore not closely linked to the performance of oil prices. Villita Tower capitalizes on the tight rental market of San Antonio, but also seeks to deliver a truly 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 ColliersInternational. “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 commanding 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. It’s a tremendously exciting project. 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. Furthermore, they are also a talented and visionary developer of luxury resort hotels of the absolute highest caliber — including the Rosewood Mayakoba in Riviera Maya, Mexico — a stunning execution of a challenging development and an iconic resort property. JMJ Development is uniquely qualified to deliver a resort caliber residential experience in downtown San Antonio with Villita Tower.”
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. 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. We’re still very early days with this offering. In fact, we’ve already gotten viable equity proposals to complete the capital stack. We are excited, and we think this financing will come together quickly.”
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 New York City, Austin, Texas, Hawaii, the Bahamas, St. Lucia, Colombia and Costa Rica.
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