Robert Horton, who led the transaction through George Smith Partners now transitioned to the role of Managing Director at Concord Summit Capital, successfully arranged $32,700,000 in construction debt financing, complemented by $16,700,000 in C-PACE, to fund the development of a 225,000-square-foot mixed use facility which will include luxury garage suites, offices, showrooms, warehouse flex units and a secure indoor parking facility. This project is the second phase of an existing Garages of America development located on the adjacent site and its flagship location in north Dallas, Texas.
“Garages Of America continues to be the gold standard in this burgeoning asset class and has seen impressive growth in demand.” As noted by Robert Horton “Utilizing C-PACE, an innovative financing solution, ensured low-cost capital for the Sponsor. This approach not only aligns with energy efficiency and conservation standards but also offers financial benefits. C-PACE enabled a reduction in capital costs and equity contributions, enhancing investor yields compared to other financing methods.”
The Sponsor, Garages of America; a leading developer in the Dallas-Fort Worth area with a track record of 4.2 million square feet in garage condos and other commercial developments, sees significant growth potential in this niche market. Their garage condominiums cater to diverse storage needs, offering climate control, power, security, and 24/7 access. Drawing parallels with the evolution of self-storage into a multibillion-dollar industry, they anticipate a similar trajectory for garage condominiums, positioning themselves at the forefront of this emerging market.
Fred Gans, founder of Garages of America, said: “C-PACE enhanced our capital stack and allowed us to embrace sustainability and innovation within Phase 2 of our Carrollton campus. By leveraging this tool, we can implement cutting-edge technologies that not only reduce our carbon footprint but also elevate the experience for our exclusive clientele. This commitment underscores our dedication to setting new standards in sustainable development within the luxury garage industry.”
This is the second project to break ground in 2024, with upcoming sites set to begin construction later in 2024 and 2025 within the Dallas Fort-Worth Metroplex
