ATLANTA, GA - Brook Farm Group and Rail Gauge Partners, LLC have closed on a construction loan and the acquisition of an 8.5 acre, off-market site in Fort Myers, Florida with plans to develop a 265-unit, Class-A multifamily community. Construction financing was provided by Trustmark National Bank and First Horizon Bank with preferred equity provided by Marble Capital. The project will break ground in July 2024 adding a modern rental community with high-end amenities to an established retail center within a high-growth market.
The project activates vacant land adjacent to the Palm Pointe Shoppes retail center at US-41 and Trailwinds Drive, making the combined site a mixed-use community walkable to attractive neighborhood retail. The site was acquired from a partnership that had previously entitled the land. This will compress the execution timeline, enabling the development team to break ground immediately with first units delivered in early 2026 when Brook Farm Group anticipates new unit deliveries to be well below recent levels.
“The Sinclair at Palm Pointe represents an incredible opportunity to deliver a highly-amenitized community in a mature, densely developed location along US-41 in a rapidly-growing Florida market,” said Peter DiCorpo, Chief Operating Officer, Brook Farm Group.
The development is centrally located with direct access to downtown Fort Myers and Fort Myers Beach and easy commutability to the Cape Coral and Estero markets. The city of Fort Myers has experienced 43% population growth since 2010 and is expected to expand further through 2027. The property is in Lee County, which has recorded the highest job growth rate of all Florida MSA’s during the past year, adding nearly 12,000 jobs, according to data from FloridaCommerce.
“This is a great example of Brook Farm Group’s ability to deploy entrepreneurial, private capital to create vibrant, neighborhood-based communities in dynamic markets throughout the Sunbelt, at a time when larger, more institutional capital remains largely on the sidelines,” said Eric Hade, Brook Farm’s Chief Investment Officer. “There is considerable long-term rental demand in the Sunbelt region, and we anticipate that by commencing development during a temporary period of volatility in the market, we will be able to deliver units into an attractive competitive environment during our lease-up in 2026.”
The Sinclair will be developed as two, four-story buildings with elevator service, a 3,800-square-foot clubhouse, a two-level fitness center, up to 2,200 square feet of coworking space, a resort style pool, a dog park and outdoor fireplaces. The community will include studio, one, two and three-bedroom units, ranging from 650 to 1,369 square feet.
“Rail Gauge could not be more thrilled to get this project done with Brook Farm Group. The infill location is insulated from existing supply and should limit future immediate competition. The walkability to retail, quick access to a thriving downtown, and convenience to the biggest area employers make this project really exciting,” said Zach Schaumburg, Principal of Rail Gauge.
The Sinclair will offer convenient access to Lee Health, a top-rated healthcare system and the largest employer in Southwest Florida. Renters will have immediate, access to adjacent retail amenities in the Palm Pointe Shopping Center including Starbucks, Dunkin’, Zaxby’s, FedEx and others, as well as signalized access to US-41. Larger retailers such as Target, Sam’s Club, Trader Joes and Publix are within a few miles of the site.
Fort Myers is home to more than 21 million square feet of office space and over 357,000 employees. It is the 6th fastest growing city in the U.S. and the 4th MSA for job growth from February 2020 to May 2023. An estimated 13,500 new jobs are projected from 2024 to 2026.
About Brook Farm Group: Brook Farm Group is a boutique multifamily investment and development firm focused on cultivating capital and creating vibrant communities in dynamic markets throughout the Sunbelt and Mountain states. The firm focuses on markets with strong business climates that support long-term job creation and dynamic housing opportunities. Founders Peter DiCorpo and Eric Hade leverage a combined 50+ years of experience in multi-family development, acquisitions, joint ventures, investment and asset management across more than 40,000 units and $10 billion of real estate. The firm is based in Atlanta and is backed by private capital sources that are committed to supporting a vision for creating long-term value for investment partners and long-term appeal for residents.
About Rail Gauge Partners: Rail Gauge Partners is an Atlanta based real estate investor and developer focused on acquiring and developing well located multifamily and build-for-rent communities in major and secondary markets throughout the Southeast. Founding partners Zach Schaumburg and Will Killgore have a long track record of executing successful acquisition and development strategies. Since 2010, including previous transactions in roles at Mesa Capital Partners and Kushner Companies, the Rail Gauge team has executed on the acquisition, development, and sale of over 36,000 units representing over $5 billion in multifamily transactions. Rail Gauge offers Development, Acquisitions, and Asset Management services. Our relationships and multifamily focus allow us to source unique opportunities that align with our partner’s strategies. Rail Gauge is investor focused first and strives to identify capital partners that become lasting relationships focused on attractive, risk-adjusted returns, trust, transparency, and execution.