$47M in capital secured for multi-housing development in Montana

MINNEAPOLIS, Nov. 6, 2023 – JLL Capital Markets announced today 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.

Located at 421 W. Main St., the project is situated in downtown Bozeman, on the corner of 5th Avenue and West Main Street. Main Street is the primary road in downtown Bozeman and features dozens of restaurants, shopping and arts. The site is a three-minute drive from Montana State University, less than a 20-minute drive to Bozeman Yellowstone International Airport, a 30-minute drive to Bridger Bowl Mountain and ski area and less than one-hour from Big Sky Ski Resort and Yellowstone National Park.

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 also 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, Scott Loving, Dan Linnell and Josh Talberg 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.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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