Empire Group Raises $30 Million to Support Future BTR Texas Community
The Empire Group of Companies recently raised approximately $30 million of equity via the independent broker-dealer and registered investment adviser community to support the development of the Village at Mayfair, a 217-unit build-to-rent community in New Braunfels, Texas. The placement agent was Arete Wealth Management.
Tower Capital, a private real estate capital advisory firm based in Scottsdale, Ariz., arranged $47.4 million in non-recourse construction financing for the Village, which will be built by general contractor Legacy MCS. The project is to be situated on nearly 20 acres within the 1,900-acre Mayfair master-planned community located roughly 35 miles north of San Antonio and 40 miles south of Austin.
“Although we are in various stages of development, lease-up, and operations on more than 15 single-family build-to-rent projects in the Arizona market, Mayfair is our third project in the rapidly growing Texas market,” said Randy Grudzinski, partner at the Empire Group of Companies. “We are thrilled to work with Tower Capital to bring this emerging residential asset class to one of the fastest growing and most dynamic markets in the country. Mayfair will be the next to build of our three build-to-rent projects currently in the works in the Austin-San Antonio metroplex.”
Empire Group is a large BTR sponsor in the independent broker-dealer and RIA community, having raised over $600 million of equity. This project is Empire Group’s 12th single-family, BTR project financed in partnership with Tower Capital. Each cottage-style home will be approximately 1,000 square feet and offer some level of private patio or yard space. The units will feature solid surface quartz countertops, stainless steel appliances, premium kitchen backsplashes, full-size washers and dryers, and upgraded smart-home features and technology.
“Tower Capital was able to secure the debt fund financing for Village at Mayfair despite persistent challenging market conditions,” said Tower Capital’s Kyle McDonough, managing partner and co-founder. “Many lenders have halted funding construction loans in recent months, but Tower was able to get lenders comfortable with the project financing and secure multiple competitive term sheets for its client.”
Tower Capital said it continues to leverage its financing expertise in the single-family BTR sector to source options for sponsors to meet their goals and objectives. Tower Capital has closed more than $1.6 billion in BTR construction financing and joint venture equity encompassing more than 7,500 units across 41 BTR communities. The firm’s pipeline of BTR projects spans multiple states, such as this Village at Mayfair in Texas and projects in Alabama, Arizona, Colorado, Indiana, and North Carolina.
Construction on the Village at Mayfair commences in Q2 2024, with the first homes expected to be available for occupancy in Q3 2025.
Tower Capital said the overall Mayfair master-planned community is slated for 6,000 residential units consisting of single family, multifamily, townhomes and BTR. Empire Group’s BTR residences will be located in the initial phase of Midtown Village, joining six national single-family builders expected to offer a mix of housing options in Mayfair’s first neighborhood.
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