3650 REIT has originated a $49.5 million loan to complete the construction of The Gabriel, a 288-unit multifamily community in Madison, Alabama. Provided to sponsor Hillcrest Acquisitions, a New York-based multifamily investing, and multifamily and skilled nursing real estate development firm, the 36-month loan was originated from 3650’s Bridge and Event Driven investment platform.
“Today’s challenging market environment has enabled 3650 to step in to fill the gap and provide capital to borrowers that require a reliable source of financing. We experienced a strong and active first quarter of the year and have continued that momentum with the origination of The Gabriel loan and the further build-out of a growing pipeline of origination opportunities,” says 3650 REIT co-founder and managing partner Jonathan Roth.
“The Gabriel project represents the opportunity for us to invest in a well-located asset in one of the strongest and fastest-expanding defense and STEM employment hubs in the country, making it an ideal housing option for residents in the area. As we see new and viable opportunities to strategically deploy capital across the country, we continue to live up to the mandate of our investors to lend responsibly and deliver consistent returns.”
The Gabriel, which broke ground in the third quarter of 2022, is approximately 20% finished. When complete, the development will include 10 three-story, garden-style apartment buildings surrounding by a central amenity area. The community will offer 520 parking spaces; a luxury pool surrounded by cabanas and grilling/picnic areas; a great lawn; a fitness center; a playground; a dog park and pet spa; a car care center; two electric car charging stations; gated access; and enhanced technology packages for each unit.
Capstone Building Corp. is serving as general contractor, and Williams Blackstock Architects designed the project. It will be delivered in phases that are scheduled to conclude in July 2024.
“We are thrilled to be closing our first loan with 3650 REIT and look forward to this being the first of many loans together,” says Hillcrest Acquisitions vice president Moshe Herskovich. “We strive to build long-term relationships with our lenders and find that 3650 shares our perspective on doing business. We believe that 3650’s in-house servicing capabilities and focus on the importance of direct relationships make them a great fit for our financing needs.”
The Gabriel loan was arranged by senior managing director Marc Tropp of Eastern Union Funding. In the first quarter of 2023, 3650 closed seven loans comprising $240 million across multiple asset classes and had approximately $13.6 billion of loans in servicing. Given its diversified national lending platform, the firm continues to build out its origination pipeline with high-quality sponsors.