Hello Mottman Village Investors,
I hope 2025 was an excellent year for you! Below is a summary of the current project status. The new website and blog will hopefully help with more frequent updates.
Debt and Equity: We are working with Newmark in Colorado and CapNorth out of Bellevue to shape the debt and preferred equity package that is appropriate for the project. We are aggressively focused on the equity raise at the moment. Over the past month we’ve reached out to over 400 individual investors, family offices, private equity firms, and contractors willing to contribute their fees. We have roughly $11.5mm in soft commitments ready to be deployed at the construction loan closing, including $1.5mm from subcontractors, $2mm from the developer, $2mm from the GC (a hybrid of Maverick and outside GC), and $6mm from preferred equity.
Permitting: The City of Tumwater has begun its initial permit review. A conservative projection to permit completion would be 4 months to finish. The architect is aware of the code changes required for the drawings and believes any redraws the city requires will take less than a month. The current plans were designed for HUD and we believe only minor modifications need to be made to pass code.
General Contracting: Over the past couple years, we have developed some strong relationships with suppliers that we believe can reduce the cost of the building significantly (3-5%). An outside GC will partner with Maverick Development to lead the build, we are interviewing 4 candidates that have built over 2500 multifamily units, and all gone from preconstruction to completion. Additionally, we feel the subcontractor pool has become more willing to reduce their pricing with a softer construction market.
Property Management: Recently, we have employed Total Property Management out of Edgewood to run an analysis of the current rental market, verifying revenue, expenses, lease up, vacancy, and other financial factors. We are happy to report that the initial assumptions made are accurate or have improved since inception.
Construction Timing: Although we are pushing for 6 months to get in the ground, depending on key personnel timing, it could be closer to 8 months.
Like I mentioned above, the initial assumptions seem to have improved and softening interest rates are helping the project as well. Stay tuned for project highlights, CRE market updates and project features as well!