ACRES Originates $29.2M Loan for Multifamily Property in Fast-Growing Montana CityJUNE 04, 2021
BOZEMAN, Mont. – (June 4, 2021) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated a $29.2 million loan to fund the construction of Babcock Apartments (the “Property”), a nearly 80,000-square-foot multifamily building located at 1612 and 1624 West Babcock Street in Bozeman, Montana in Gallatin County. The loan is provided to sponsor Roundhouse Development (“Roundhouse”), a fully integrated developer and operator of multifamily housing and the largest multifamily developer in Idaho and Montana, with $1.1 billion in multifamily assets and 4,000 units under management or in its development pipeline.
“As one of Montana’s fastest-growing areas, Gallatin County has seen a strong influx of residents from California, Utah, Texas, Washington and Colorado,” said ACRES Chief Executive Officer and President Mark Fogel. “Bozeman has been a direct beneficiary of this growth and is bolstered by Montana State University, a division-one school that has recently undergone improvements and helps provide diversity of employment to the city. As more young professionals look to relocate to Bozeman, Babcock Apartments will provide a new housing option for those looking for high quality-of-life with excellent access to downtown.”
Babcock Apartments will contain 95 rental units, 105 parking spaces and 2,300 square feet of ground-floor retail space. The Property will have high-end exterior and interior finishes and amenities, making it competitive with the top of the local multifamily market. Interior features will include in-unit washers and dryers, stainless steel appliances, dishwashers, wood cabinets, marble countertops, and private balconies in select units. Community amenities will include a fitness center, tenant lounge, open space areas, individual storage units, and on-site parking.
Casey Lynch, Founder and CEO of Roundhouse, stated, “From the get-go, the ACRES team has been aligned with our vision to put humanity into housing and focus intently on the resident experience. This financing will allow us to utilize our local expertise to establish another successful multifamily development that will serve the Bozeman community for years to come.”
Babcock Apartments is located just west of downtown Bozeman and approximately half a mile north of Montana State University, the largest employer in Bozeman. It sits within walkable distance to retail and entertainment establishments, restaurants, schools and public green spaces. Additionally, the Property resides within proximity to major attractions such as Yellowstone National Park and Big Sky Resort. Babcock Apartments will allow residents to live near wide-open spaces while enjoying the luxuries of the city, accommodating the influx of residents that began prior to the pandemic and has continued over the last year.
The loan was arranged by Jonathan Lee of George Smith Partners, who said, “We were thrilled to work with the ACRES team on this transaction. They established themselves from the outset as they understood the demand in Bozeman, the housing shortage the city has experienced, and the need to bring on new units to alleviate the housing pressure. From start to finish they led as a relationship lender who seamlessly and collaboratively worked with our client to close the transaction on a tight timeframe”
The deal was originated by Chris Hetzel of ACRES’ Los Angeles office.