An Alabama developer has completed the purchase of a 304-acre site near Old Scenic Highway and Flanacher Road for Zachary Trails, a 621-lot neighborhood.
Zachary Trails Land Co., headed by Marion Uter of Daphne, Alabama, bought the site with the help of an $18.75 million loan from Trez Forman Capital. Zachary Trails bought the property in early March for nearly $6.7 million, the remainder of the loan will cover development costs.
The plan is for national homebuilder D.R. Horton to purchase the lots and offer a variety of houses, with an average price of $235,000.
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“This project is well positioned in the market and should do exceptionally well,” said Brett Forman, president and chief executive officer of Trez Foreman.
This is the second loan Uter has secured from Trez Forman in Louisiana. In September, he borrowed $2.5 million to develop 362 home sites near Lake Charles that were purchased by D.R. Horton.
Uter said lot construction will start immediately. By the end of the year, work should start on the first homes in Zachary Trails.
Uter said he liked the site because it's next to Meadow View, another D.R. Horton development. "It's almost like an extension of that property," he said
It will take several years to build Zachary Trails. Even if everything went perfectly, Uter said all of the homes won't be built for six or seven years.
Trez Forman provides commercial bridge loans for development and construction and senior stretch financing, starting at about $5 million.