Developer to convert 131 hotel rooms into 135 studio apartment units with amenities
Forman Capital, a private direct real estate lender based in Palm Beach County, Florida, provided a $9.41 million construction loan to a developer who will convert a vacant hotel to a thriving apartment community. With financing in hand, construction will begin soon on the 5.24-acre site located at 2444 Maple Ave. in Burlington, N.C., between the Greensboro-Winston Salem and Raleigh-Durham MSAs.
The sponsor/developer is Manhattan-based GoodHomes Communities. Ben Jacobson, Scott Mehlman and Ty Regnier originated the debt on behalf of Forman Capital.
“Our client has been highly successful in converting obsolete hospitality assets into affordably priced apartment communities around the U.S.,” Mehlman said. “It is very satisfying for Forman Capital to work with a developer who is providing a viable option for many people who have been priced out of the traditional rental market.”
GoodHomes is planning to convert 131 rooms at the hotel into 135 studio residential units. OYO GoodHomes, as the new community will be called, will offer amenities, including a renovated swimming pool, fitness center, game room and storage space. Rent is expected to be approximately $900 per month, which is well below average prices in nearby markets.
Additional square footage will be available to lease to a commercial user.
OYO is ideally located near the I-85/40 interchange, providing easy access for commuters to major employers in and near Greensboro-Winston-Salem and Raleigh-Durham. The region is seeing new job creation thanks to a $1.29 billion expansion of a Toyota battery manufacturing facility and a $4 billion factory currently being built by a Vietnamese automobile company.
“This is the first time we have worked with this borrower and hope it will be the first of many deals together,” Jacobson said. “The borrower has a commendable mission to help address the need for attainable rental product.”
About Forman Capital:
Palm Beach-based Forman Capital is a provider of private commercial real estate debt and equity financing for transactions ranging from $5 million to $100 million. The firm focuses on short-term construction financing, mezzanine debt, and preferred equity across various real estate asset classes and geographies. Company principals Brett Forman and Ben Jacobson have closed more than $2.6 billion in commercial real estate transactions since 2004. For more information, visit www.formancap.com.
