In the coming weeks, ConnectCRE will be featuring speakers and moderators who will be participating in panel discussions at the upcoming Connect Texas Multifamily event on August 20th. One of these panelists is George Maravilla from Tower Capital, who will be speaking on the topic of Development & Redevelopment.
Tower Capital has recently secured financing for several build-to-rent projects in various markets including Texas. From a financial standpoint, there are numerous benefits to BTR for developers such as catering to demographic trends and generating operating income before project completion. However, it’s important for borrowers to remain cautious about potential risks.
Developers must consider factors like market vacancy rates and incoming supply when determining rents, concessions, and absorption rates in today’s competitive environment. This may lead them towards seeking alternative debt and equity solutions from Tower Capital instead of traditional bank loans.
One area where Tower Capital specializes is arranging capital for developable land. As greenfield land costs continue to rise in Texas, there has been a shift towards adaptive reuse projects on already-developed land; however this trend hasn’t been seen much yet by Tower Captial with most focus still being placed on BTR developments or other types such as industrial or self-storage construction across the sunbelt region.
With access to a wide range of capital sources,Tower Captial can provide diverse options tailored specifically towards each client’s needs.However,some sources have become less active due their hesitancy toward development risk.Private equity groups,in particular,tend shy away from development opportunities currently because they believe similar returns can be achieved through purchasing existing assets below replacement cost without taking any construction risk.
Don’t miss out on hearing insights from George Maravillaand other industry experts at Connect Texas Multifamilyin Dallason August 20th.Register nowto secure your spot!
