Developer the True Life Companies has secured a total of $77 million in acquisition and construction financing to build two townhome projects in the Bay Area. Madison Realty Capital originated the funding for the developer, and noted limited new housing in the area and the high demand for high-quality single-family homes as its interest in the project.
True Life Companies secured $45 million for the construction a 50-townhomes property with 8,000 square feet of retail space in Sunnyvale, which is being built in partnership with Hillwood Investment Properties. The property will feature a mix of two, three, and four-bedroom floorplans, each with a two-car garage and a private deck. The project will be built in two phases, with the construction of 85 townhomes in phase one. Due to Sunnyvale’s below market rate housing requirements, 12.5% of townhomes will be sold at affordable prices.
The Bay Area has a deep supply-demand imbalance for housing, despite some exodus out of the market during the pandemic. In 2020, just before the pandemic hit, Three of Landsea Homes’ master-planned communities sold out in the Bay Area: The Vale in Sunnyvale, Siena in Milpitas and Stoneyridge in Walnut Creek. All three communities sold out in less than 30 months, illustrating the strong demand.