JV Lands $19M Construction Loan for Boise-Area Community
The developers will use the financing to build the first phase of Summertown Apartments in Meridian, Idaho.
A joint venture between Phoenix Commercial Construction and 111 Capital has secured a $19.4 million construction loan for the first phase of Summertown Apartments in Meridian, Idaho, a suburb of Boise. The project’s initial component will consist of 36 garden-style units and 30 rental townhomes.
Part of the loan will be used to pay for land development during phase one, but also land development for an additional 125 multifamily units and nine single-family lots, which are part of the project’s second phase. Trez Capital provided the financing. When complete, Summertown Apartments will have 200 units across 13.7 acres.
In December 2019, the joint venture secured another $27.7 million construction loan for the project. Parkview Financial provided the financing, which was arranged by Avison Young Capital Markets Group on behalf of the borrower, REBusiness Online reported at the time.
According to BoiseDev, construction has been delayed until now because of the COVID-19 pandemic. Community amenities will include a clubhouse, pool, gym and yoga room, media room, pet park and courtyard. Patios and 404 parking stalls will also be available, the same source reported.
Located at 745 W. Ustick Road, the community will be some 13 miles northwest of downtown Boise, via Interstates 84 and 184. Several shopping, dining and entertainment options will be available within 4 miles from the property, including The Village at Meridian mall. Settlers Park will be right across the street from the development, while Roaring Springs Water Park will be some 4 miles south.
A burgeoning market
Scott Mehlman, Vice President, Origination at Trez Capital originated the loan on behalf of the borrower. According to Mehlman, Meridian’s growth and demand is due to its slower-pace lifestyle and housing affordability, a trend that began to accelerate during the pandemic, creating a shortage of housing in the suburb.
Boise ranked as the top market for rent growth in the U.S. in mid-2021, due to its strong economic expansion, unemployment at an all-time low and jobs at an all-time high. The metro currently has more than 3,300 units under construction, with another another 3,000 units in the planning stages.