Neutral announced that it has secured $133.3 million in construction financing for its development project, The Edison, a 378-unit, mass timber, luxury apartment project in Milwaukee, Wisconsin.
Bank OZK provided senior financing, and Pearlmark delivered the mezzanine financing, with JLL Capital Markets working on behalf of Neutral to facilitate the transaction.
MADISON, WISCONSIN / ACCESSWIRE / January 13, 2025 / Neutral announced that it has secured $133.3 million in construction financing for its development project, The Edison, from Bank OZK and Pearlmark.
The Edison, located at 1005 North Edison Street in Milwaukee, WI., will provide 378 market-rate rental units and approximately 7,200 square feet of retail space. At 31 stories, The Edison is on track to be the tallest mass timber building in North America.
The project will feature best-in-class amenities focused on residents' wellness, including a fitness center, spa, pool, sauna, cafe, demo kitchen, dog park, movie room, community garden, entertainment deck with kitchens, and a top-floor sky lounge.
The Edison project has already secured over 62% of the required equity funding. It will commence construction this spring through an equity bridge loan from a Neutral affiliate while the remaining 38% of equity is being finalized. Neutral offers accredited investors two convenient ways to invest: through Charles Schwab using the registered SSID/CUSIP number or via Neutral's online investor portal.
With the $133.3 million in new financing, the project is slated to start construction in Q1 2025 and welcome tenants by Q3 2027.
The Neutral development team is led by co-founder and CEO Nate Helbach, co-founder Matt Frazer, and CPO Daniel Glaessl.
"We're grateful to partner with Bank OZK and Pearlmark and for JLL Capital Markets' leadership in facilitating this milestone financing. Successfully securing funding in today's challenging financial market environment underscores the strength of the project's fundamentals and our exceptional project team. In an era of higher interest rates, institutional buyers will increasingly seek quality opportunities like The Edison which combine superior environmental performance with lower operating costs. We invite equity investors to join us in delivering this transformative project." said Helbach.
"Edison stands apart through its innovative mass timber construction and pursuit of both Passive House and Living Building Challenge certifications, creating a differentiated product that we believe will attract premium valuations in future years." said Glaessl.
"Having founded Tribute Technology with just $100 and growing it into a successful exit exceeding $1 billion, I'm excited to bring that same entrepreneurial drive and technological expertise to Neutral. Neutral represents a similar opportunity to transform an industry through innovation by combining mass timber construction with the highest sustainability certifications to create truly differentiated real estate assets. I invite accredited investors to join me in this journey by investing in The Edison as we work to revolutionize urban multifamily living." said Frazer.
About Neutral
Neutral, founded in 2020, is a vertically-integrated real estate development company that crafts financially responsible, sustainable living spaces. In addition to The Edison, Neutral is currently building two mass-timber mixed-use projects in downtown Madison, WI. The company is headquartered in Madison, WI, and San Jose, CA. Neutral's projects use environmentally friendly materials like mass timber to foster healthy lifestyles and well-being in their communities. For more information, visit us at https://www.neutral.us/
Media kit with images: https://tinyurl.com/edison-financing
Contact Information
Daniel Glaessl
Partner and Chief Product Officer
dg@neutral.us
4084420689
SOURCE: Neutral
View the original press release on accesswire.com
