Trez Forman Capital Group has loaded $20.5 million for a new apartment complex in North Carolina, emphasizing the lender’s confidence in the suburban multifamily market in the Southeast.
Diamondback Investment Group LLC, a Greensboro, North Carolina-based residential development company, is building the 183-unit St. Marks garden-style apartment complex on 7 acres in Burlington.
This is the second loan by Boynton Beach-based Trez Forman to Diamondback. The commercial mortgage lender issued a $42 million loan for construction of The Point at Caldwell Station apartment and townhouses community last July in Huntersville, North Carolina.
“So far they’ve proved to be reliable. They’ve proved to be on top of their game. … They know how to build. They know how to find the land,” said Brett Forman, president and CEO of Trez Forman. “They’ve actually done other projects that we’ve seen go, what we call, round trip.”
Diamondback’s other development in Burlington is the finished Retreat at the Park, a luxury garden-style complex with one-, two- and three-bedroom units.
St. Marks is due to be finished in two years with funding from the loan that closed Jan. 11. The loan covers 75 percent to 80 percent of the projected development cost.
Forman declined to release loan terms, saying only it’s a floating rate.
Trez Forman is lending with Libor floating rates starting at about 8 percent, although Forman said it’s not specific to the St. Marks loan.
Trez Forman has remained confident in the real estate market in Southeastern suburban markets even when much of the attention in real estate circles has been focused on urban core development.
“We think that there’s more of an oversupply in the urban core than the suburban markets,” Forman said on the multifamily market. “We evaluate each suburban market on a case-by-case basis.” He noted there’s not a lot of supply in Burlington.
This is at least the seventh loan Trez Forman has issued in the Carolinas since the start of 2018.
Other loans include $59.35 million in construction financing for a shopping center in suburban Mansfield, Texas, and $21.9 million for the development of a 114-unit multifamily project in Georgia’s Dawson County about 50 miles from Atlanta. Both closed in the fourth quarter.
Trez Forman is a joint venture between mortgage lender Forman Capital and Canadian commercial mortgage lender Trez Capital Group.