Multifamily developer JCF Living has received $78 million in construction financing to build two single-family rental communities in Panama City, Fla. The Housements™ build-for-rent communities mark JCF Living’s first projects in Florida. Projects are planned for additional Southeast states including South Carolina, Alabama and Tennessee.
Eyzenberg & Co. arranged the two separate financing transactions for the developer. Gregg Delany, managing director of CRE project financing at Eyzenberg, secured the construction financing for both developments, the latest installments in several transactions totaling more than $250 million for JCF Living’s SFR projects alone.
He said the company’s BFR concept, which has been growing in popularity during the pandemic, combines a Class A apartment layout and community living with the privacy and natural light of a single-family residence in a secure, resort-like community. Amenities include a modern clubhouse, pool, fitness center, business center and other offerings found at traditional apartment complexes, Delany said. Lower density also leads to more green space compared to traditional apartment developments.
The larger of the two deals is a $46 million construction loan to finance the development of a 228-unit community at Clara Avenue. Clara Living will feature 104 single-story, two-unit buildings and 20 single-family homes on a 71.2 acre site. Construction has begun with the first units expected to be completed before 2022.
The second transaction is a $32 million construction loan for a 79-unit community on the waterfront at Saint Andrews Bay. The community will offer both single- and two-story units with one family per building. JCF Living broke ground about a month ago and expects to complete construction within 18 months.
JCF Living, previously known as JCF Residences, uses modular, factory-built components that are then put in place on sites as the developments are approved delivering the community about 50 percent faster than a traditional development. The process was used last year on the company’s Virtuoso Living property in Huntsville, Ala., a 398-unit BFR development built in two phases. Eyzenberg & Co. secured a total of $51.8 million in two construction loans for the Huntsville development.
David Eyzenberg, president of Eyzenberg & Co., said in a prepared statement demand for SFR communities has been growing as the product is introduced to new markets. He said JCF Living’s concept in particular has been well-received as the company’s innovative design concept and construction methods also help reduce costs. John Fitzmaurice, JCF Living founder & president, added the modular design and construction techniques used in the factory deliver a product built to higher tolerances than one built on site. He also said they can better manage commodity prices fluctuations and labor shortages.
The Panama City region has been experiencing an influx of new businesses and renters attracted by the area’s beaches and waterfronts as well as improvements to infrastructure, transportation and amenities. The annual employment growth rate is expected to be 2.5 percent over the next five years. Tyndall Air Force Base in Panama City is also a main driver for the area’s growth.