Tomball, Texas and Simpsonville, South Carolina, August 22, 2025
News Summary
HMF Americana obtained a $113.5 million construction loan to develop two Cottage Green build-to-rent communities in Tomball, Texas, and Simpsonville, South Carolina. The financing is split into an $83.8 million senior note and a $29.7 million B-piece, with an 18-month initial term and two optional six-month extensions. Together the sites will deliver 575 low-rise single-family rental homes with one- to three-bedroom layouts and on-site amenities including greenspace, parking and a pool. The facility was originated by institutional lenders and arranged by a capital markets advisor, supporting the Cottage Green platform’s continued expansion.
HMF Americana Secures $113.5M Construction Loan for Two 575-Unit Build-to-Rent Projects
A construction loan totaling $113.5 million has been secured to fund two new build-to-rent communities branded The Cottage Green, bringing 575 rental units to suburban markets outside major Southeast and Texas metros. The financing will support projects in Tomball, Texas, and Simpsonville, South Carolina, and is structured with both a senior note and a subordinate tranche to cover construction costs.
Key financing details and participants
The financing was originated by two investment firms and comes in the form of an $83.8 million senior note plus a $29.7 million B-piece, resulting in the total $113.5 million package. The loan carries an initial 18-month construction term with the option for two six‑month extensions. A specialist capital advisory firm arranged the transaction.
Who is behind the projects
The developments are being built by a Texas-based multifamily developer that has been expanding its single-family rental brand. Once finished, these two sites will become the brand’s fifth and sixth Cottage Green developments. The financing partners include a New York–based real estate investment firm that manages approximately $18 billion in assets, working alongside another institutional investment partner on the loan.
Project and market specifics
Combined, the two projects will deliver 575 units of one- to three-bedroom multifamily homes designed for the build-to-rent market. Each community is planned to include dedicated greenspace, on-site parking and a community pool. The developments are positioned to serve renters seeking single-family-style living within rental communities.
The Tomball site lies roughly 34 miles north of downtown Houston, placing it inside the broader Greater Houston region. The Simpsonville site sits in a smaller community of about 23,000 residents, located approximately 15 miles south of Greenville, South Carolina. Both locations were selected for their regional demand fundamentals and ongoing multifamily interest.
Capital structure and rationale
The loan’s split between a senior note and a B-piece reflects a common structure for construction financings where part of the risk is allocated to a subordinate tranche. The 18-month term aligned with construction schedules, plus the two optional six-month extensions, gives the sponsor flexibility to complete construction and lease-up phases.
Executives at the originating firm noted that the financing fits a strategy of supporting experienced sponsors in markets with solid fundamentals and healthy multifamily demand, and that backing thoughtfully designed build-to-rent housing aligns with evolving renter preferences.
Local context: Other build-to-rent activity in Tomball
The Tomball market has already seen recent build-to-rent deliveries. A separate 148-unit single-family rental community completed in the area features larger three- to four-bedroom homes, furnished kitchens with stainless steel appliances and granite countertops, two-car garages, and fully fenced backyards. That community also includes common amenities such as a pool, playground, dog park and sports park, and reported starting rents in the low-to-mid thousands for three-bedroom homes. The presence of multiple projects underscores growing developer interest in the Tomball submarket.
Next steps and construction outlook
With construction financing in place, site work and vertical construction milestones are expected to follow according to typical build-to-rent schedules, though a specific delivery timeline has not been disclosed. The loan’s structure and extension options provide a cushion against potential schedule adjustments during construction and lease-up.
What this means for the market
The deal adds momentum to the build-to-rent sector in both Texas and the Southeast, illustrating continued institutional capital flow into suburban single-family rental product. For local markets, the projects will increase the supply of professionally managed rental homes that combine single-family features with community amenities.
Frequently Asked Questions
Q1: How much financing was secured for the two Cottage Green projects?
A1: The sponsor secured a total of $113.5 million in construction financing.
Q2: How many units will the projects deliver?
A2: The two developments will deliver a combined 575 units of one- to three-bedroom homes.
Q3: Who provided the financing?
A3: The financing was originated by two institutional investment firms, with a capital advisory firm arranging the transaction.
Q4: What is the loan structure and term?
A4: The loan is structured as an $83.8 million senior note and a $29.7 million B-piece. It has an 18-month term plus two optional six-month extensions.
Q5: Where are the projects located?
A5: One project is in Tomball, Texas, about 34 miles north of downtown Houston. The other is in Simpsonville, South Carolina, a community of roughly 23,000 residents about 15 miles south of Greenville.
Q6: What amenities will the developments include?
A6: Each site will include dedicated greenspace, on-site parking, and a pool, alongside one- to three-bedroom home types typical of build-to-rent communities.
Q7: Do these projects reflect a broader trend?
A7: Yes. The financing and multiple recent local completions indicate sustained investor and developer interest in suburban build-to-rent product.
Key features at a glance
| Feature | The Cottage Green Tomball | The Cottage Green Simpsonville | Combined / Loan Details |
|---|---|---|---|
| Unit count | Not individually disclosed | Not individually disclosed | 575 total units |
| Product type | Build-to-rent, 1–3 bedroom homes | Build-to-rent, 1–3 bedroom homes | Single-family-style rental communities |
| Amenities | Greenspace, on-site parking, pool | Greenspace, on-site parking, pool | Community amenities and rental management |
| Location context | ~34 miles north of downtown Houston | ~15 miles south of Greenville, SC; ~23k population | Suburban markets with growing renter demand |
| Loan amount | N/A | $113.5M total (Senior note $83.8M; B-piece $29.7M) | |
| Loan term | N/A | 18 months with two 6‑month extensions | |
| Developer | HMF Americana (Cottage Green platform) | Fifth and sixth projects under the brand | |
| Transaction arranger | Sterling Realty Capital | ||
| Capital providers | Institutional investment firms (senior and B-piece originators) | ||
Deeper Dive: News & Info About This Topic
Additional Resources
- Commercial Observer: Siguler Guff & Benefit Street Partners $114M Construction Loan (Build-to-Rent)
- Wikipedia: Build-to-rent
- Multi-Housing News: Ascendant Development Starts Metro Houston SFR Project
- Google Search: single-family rental development Tomball
- REBusiness Online: Tricon Residential Completes 148-Unit Build-to-Rent in Tomball, TX
- Google News: Tricon Residential Tomball build-to-rent
- Community Impact: Prime Path Financial Relocates to Tomball Office
- Wikipedia: Tomball, Texas
- Business Wire: Centex Construction Appoints Jeff Wonsmos as Chief Financial Officer
- Encyclopedia Britannica: construction industry United States
Author: Construction CA News
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