JLL Capital Markets announced that it has arranged the $32 million construction financing and the $15 million equity placement for the development of Freestone on Main, a 121-unit, luxury market-rate multi-housing community located in downtown Bozeman, Montana.
JLL worked on behalf of the Sponsor, Reuter Walton, to secure the three-year, floating-rate loan through a regional bank. Additionally, JLL also sourced the joint venture equity from a real estate investment manager.
With an anticipated completion of October 2024, Freestone on Main will include 121 apartments, 127 stalls of underground parking, 15 stalls of surface parking, 222 bike parking stalls, 65 ski lockers and 900 square feet of retail space. The project will consist of studio, one and two-bedroom units ranging from 599 square feet to 1,820 square feet. The units will feature high-end finishes. Community amenities will include rooftop indoor and outdoor lounges with a fireplace and grills to enjoy views of the Hyalite Peak and Spanish Peaks, a second-level outdoor courtyard with a large group hot tub and sauna, a fitness and yoga studio, a pet spa, microbrew and coffee taps, a library, co-working spaces, dedicated ski and snowboard storage in custom lockers and underground heated parking.
Bozeman is widely considered to be one of the most livable places in the country, leading to a massive inflow of residents and marking it as the fastest growing Micropolitan Statistical Area from 2018 to 2021. That trend has been fueled by an increase in well-paying jobs in companies, such as Oracle, and by a surge in remote workers who have chosen Bozeman for its nature, world-class outdoor activities and high quality of life.
This is the Minneapolis office’s second significant multi-housing transaction in the Bozeman market in recent years. Managing Director Mox Gunderson and Senior Director Adam Haydon marketed and sold Cannery Flats, a 52-unit, mixed-use property, in December 2021. This transaction holds the record for the highest price per door value for a multi-housing sale in Montana.
The JLL Capital Markets team was led by Managing Directors Mox Gunderson and Scott Loving and Senior Director Adam Haydon.
“To compel attractive debt and equity partners for a development in today’s climate takes a very special project and developer. This Main St. location in the burgeoning Bozeman market matched with the development expertise of Reuter Walton allowed that to get done,” said Loving.
“Our excitement about this project was echoed by the market. True JV equity is scarce right now, but a solid sponsor and promising location can make it happen. We can’t wait to see the finished product,” said Gunderson.
