Home News Developer lands $66 million loan for Oswego townhome rentals

Developer lands $66 million loan for Oswego townhome rentals

by admin
0 comment

Developers used to build and sell single-family homes and town homes, but nowadays more and more people are building them as rental homes. They want the benefits of living in a low-density suburban home (more space, backyard, good school), but for those who can’t afford a large down payment or simply don’t want to bear the burden. is. Of owning one. Higher mortgage rates can push up borrowing costs and make it harder for some buyers to buy a home, which could further increase demand for rental homes.

In a statement, Lind Group CEO A. David Lind said, “Lind wants 45% of all renters to own a home, but can’t afford a home, so it’s in rental space. I believe I have enough legs. ” “By raising interest rates, the dream of ownership became even less understandable. Higher prices and rates have led more lessors to choose a single-family rental community, and they are their preferred for homes. We aim to meet your needs. “

In Oswego’s development, two-bedroom and three-bedroom units range from 1,559 to 1,747 square feet and monthly rents start at $ 2,700. The house has a patio, a basement and a fenced backyard with two care garages. 137 Dorset Avenue’s complex includes a clubhouse, fitness area and swimming pool.

Lynd raised some of the funding for the project through crowdfunding company Crowd Street. During February According to CrowdStreet’s marketing material at the time, Lynd sought to raise development funds through CrowdStreet with $ 14.9 million in capital, approximately $ 800,000 in capital and $ 47.2 million in debt, bringing the total cost of the project to $ 62.9 million. became.

Instead, according to the CrowdStreet website, Lynd raised $ 5.3 million from 77 investors through CrowdStreet. Lind provided a balance of equity with a $ 66 million construction loan from Steep Rock Capital, a lender based in Greenwich, Connecticut, Lind’s spokesman said. He did not provide details about financing or explain why the cost of the project increased from the previous amount.

Developers, including major homebuilders like Lennar and PulteGroup, have invested heavily in rental housing across the country over the past few years. In January, two Chicago-based companies, Harrison Street Real Estate Capital and Core Space, were founded. $ 1.5 billion joint venture Build rental lots in markets such as Denver, Dallas and Nashville. Ventures are also looking for projects in the western suburbs of Chicago.

Several rental town home developments have been held here over the past few years, including Ashwood Place, a 60-unit property in Aurora. However, most architects, especially single-family home developers, have so far bypassed the Chicago area, said Erik Doorsching, executive vice president and managing partner of Shomberg-based consulting firm Tracy Cross & Associates. increase.

Doersching was aware of only one local single-family home project. Clubland in Antioch, Development of 110 units under construction in Antioch on the Wisconsin border. He said the lease at Clublands will begin later this summer.

Given the strong demand for single-family rental housing, Doorsching hopes to see more projects here in the future.

“It’s a promising sector of the market,” he said.

You may also like