Developer Amir Peleg has secured $36.6 million of construction financing to build a new multifamily and single-family home development in suburban Atlanta, Commercial Observer can first report.
LFB Ventures provided the loan for Peleg’s planned two-phased Weatherstone development in Dallas, Ga., that will comprise more than 1,500 multifamily units, over 650 single-family homes and 200 town houses. A vast majority of the homes have already been sold to a single-family residential fund (SFRF) and individual investors.
Tilson noted that the financing package enables the current land value of the property at 6327 Monroe Cole Road to be contributed as fresh equity to the transaction.
“The sponsor had already done significant work to the land to date, which created enough equity per lot to keep their cash to close the loan at a bare minimum,” Tilson said. “Kay Finance was extremely pleased with being able to secure our client a high-leverage loan, only needing to pay interest on what is drawn and with no requirement to hold an interest reserve on Day 1.”
Peleg, partner with Safe Future Real Estate and Riz Development, has acquired more than 1,400 buildable lots around metropolitan Atlanta during the past 12 months that will lead to more than $1 billion worth of future development, according to Tilson. Strong fundamentals in the housing market around Atlanta was a big attraction to joining the deal, Tilson said.
Officials for LFB and Safe Future did not immediately return requests for comment.
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