Berkadia Arranges $47M Construction Loan for Apartment Community in North Carolina’s Southwest Cumberland County
One Real Estate Investment is building “The One at Hope Mills” in Fayetteville
Fayetteville, N.C. – July 17, 2023 – Berkadia has arranged senior construction financing for The One at Hope Mills, a 360-unit garden-style multifamily development in the rapidly expanding Fayetteville, North Carolina market.
Senior Managing Director Mitch Sinberg and Managing Directors Brad Williamson, Scott Wadler and Matt Robbins of Berkadia South Florida secured acquisition financing on behalf of the sponsor, One Real Estate Investment (OREI), a real estate investment and management firm based in Miami, Florida.
City National Bank of Florida with Abanca provided the $47 million floating rate construction loan for the project. Construction will begin in the third quarter of this year and the property is scheduled for completion in the second half of 2024.
Founded in 2001 by Jeronimo Hirschfeld, OREI is a leading multifamily investment firm with a portfolio of garden-style apartment communities valued at more than $1.5 billion in several high-growth markets across the Sun Belt. In 2022, OREI broke ground on over 800 units and has over 1,500 units in planning for 2023.
“The Sponsor’s investment thesis is driven by the favorable rental market in Fayetteville, which experienced 16.8 percent year-over-year rent growth, while the vacancy rate has compressed due to limited supply and a strong job growth,” said Williamson. “Hope Mills is being transformed by the southwest expansion of the I-295 Outer Loop, providing commuters with quicker access to Fayetteville and Fort Bragg while enabling the emergence of area’s logistics corridor.”
Located 3680 Elk Road, The One at Hope Mills will consist of 11 three-story buildings and a clubhouse on a 46-acre site approximately six miles southwest of downtown Fayetteville and three miles west of Fayetteville Regional Airport. The property will feature a mix of one-, two-, and three-bedroom floor plans with best-in-class amenities.
Community amenities will include a resort-style pool, an outdoor cabana with TV’s, a game room with billiards and shuffleboard, and a state-of-the-art fitness center amongst many others.
The One at Hope Mills benefits from its proximity to several retailers including the high-end grocer Harris Teeter and the area’s main retail corridor, N Main Street. The property also will benefit from the expansion of I-295 Outer Loop, which will provide excellent interstate connectivity for the region and a direct connection from Fort Bragg to I-95 south of the city.
“We’re thrilled to present our second residential development in the Fayetteville metro area,” stated Jeronimio Hirschfeld, President and CEO of OREI. “This project represents a unique and very exciting opportunity that capitalizes on continued growth in the market. We look forward to expanding our presence throughout the Southeast region with additional development opportunities in high growth markets with strong fundamentals.”
Berkley Hall Companies is the general contractor, BSB Design is the architect, and Site Design Inc. is the civil engineer for The One at Hope Mills.