Target Information

Berkadia has successfully secured a construction loan of approximately $34.775 million for the development of The ONE at Montgomery, a 264-unit garden-style multifamily residential community in Montgomery, Alabama. This project is spearheaded by One Real Estate Investment (OREI), a Miami-based firm led by Jeronimo Hirschfeld, Bob Barton, and Thomas Kochak.

OREI, founded in 2001, boasts extensive experience in real estate development, investment, and asset management, with a portfolio encompassing over 11,500 apartments across the Sunbelt region. The financing was provided by Synovus Bank, structured as a floating-rate loan with a loan-to-cost ratio of 65%.

Industry Overview in Alabama

The multifamily housing market in Alabama is experiencing a notable growth surge, driven by a diverse economy that includes military and defense sectors, manufacturing, retail, and emerging technology data centers. The capital city, Montgomery, reflects this growth trajectory through its proactive approach to enhancing living conditions to support a burgeoning workforce.

Recent trends indicate a robust demand for apartment living, particularly in areas like Montgomery, where population growth and job opportunities are on the rise. This demand is accentuated by the influx of businesses in the tech sector, which bolsters the need for high-quality rental housing to accommodate new residents.

As the state continues to evolve economically, developers are increasingly focused on meeting the housing needs of a diverse demographic, including both white- and blue-collar workers. Such dynamics create promising opportunities for investment in multifamily real estate projects.

The ONE at Montgomery is poised to cater to this growing demand by offering modern amenities and a strategic location, thus positioning itself as an attractive option for prospective tenants seeking quality housing in the region.

Rationale Behind the Deal

The decision to finance The ONE at Montgomery stems from OREI's proven track record in developing successful communities in high-growth markets. Brad Williamson of Berkadia highlighted OREI's capabilities, stating that their success in delivering new housing solutions amidst job growth in the Sunbelt played a crucial role in attracting funding from various lenders.

With Montgomery's vibrant economic landscape, the demand for new housing is evident, making this development not only timely but also strategically sound in addressing housing shortages in the area.

Information About the Investor

One Real Estate Investment (OREI) has established itself as a reliable player in the real estate development sector since its inception in 2001. The firm's significant portfolio, which encompasses more than 11,500 apartment units, is a testament to its commitment to quality and community-focused projects across the Sunbelt region.

OREI's leadership is recognized for its strategic vision and operational expertise, which have been instrumental in navigating the complexities of real estate investment and development. The company's focus on expanding its footprint in high-growth markets such as Alabama underscores its ambition to cater to the evolving housing needs of today’s workforce.

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From an investment perspective, The ONE at Montgomery presents a compelling opportunity for OREI and its financiers. The project's location in the affluent EastChase neighborhood, coupled with its proximity to diverse retail and recreational amenities, makes it an attractive proposition for prospective tenants.

The combination of Montgomery's economic growth and the strategic lifestyle offerings around The ONE at Montgomery suggests a strong rental demand that could lead to favorable occupancy rates and returns on investment. Furthermore, the amenities planned for the development, such as a fitness studio, pool, and dog parks, cater well to the preferences of modern tenants, enhancing its attractiveness.

Given the demographic trends indicating a shift toward urban living and the increasing number of job seekers moving to the region, this investment is likely to yield positive outcomes in the long term. Overall, The ONE at Montgomery stands out as a sound decision amidst expanding market opportunities in Alabama's real estate landscape.

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