Izo Capital has provided a $25.6 million construction loan to Sundance Properties to advance the completion of a multifamily development project in Alpine, Wyoming. The 24-month senior construction loan is intended to finance the completion of Phase 1 of "The Flats at Alpine Junction" project, which will comprise a total of 64 residential units. The funds will enable the construction of three additional buildings with 48 apartments, in addition to the 16 units already completed and leased.
Peter Porraro, co-founder and Chief Investment Officer at Izo Capital, emphasised the promising outlook for the overall project, which is ultimately planned to include 160 units. The location is just 35 miles from Jackson Hole Mountain Valley, home to numerous employers in the town of Jackson, Wyoming. Porraro pointed out that Alpine exhibits high demand for multifamily housing coupled with limited supply. This situation is further exacerbated by a recently opened medical centre and a public charter school scheduled to open for the 2026-2027 academic year.
Porraro explained that development in this region is challenging, particularly regarding infrastructure. He highlighted that there is little new supply near Jackson Hole, which underscores the need for more apartment projects. The "The Flats" development has already shown strong leasing momentum. Current rental prices support the credit underwriting assumptions for the remaining project phases. The first phase is expected to be completed next spring.
The high demand for rental housing for workers in Jackson Hole is due to elevated property prices, with median home prices almost reaching $3 million and townhouses starting at approximately $1 million. The project at 303 Highway also benefits from excellent transport links, including direct access to the START Bus system connecting Alpine and Jackson. Ken Cady, Principal at Sundance Properties, noted that the high demand for the first completed building underscores the urgent need for new rental housing in Alpine. This financing makes it possible to continue providing high-quality housing that represents a more affordable option for residents across the wider Jackson region.
Porraro mentioned that constructing multifamily projects in mountain regions presents particular challenges due to high construction costs and a limited labour pool. He commended Sundance Properties for their diligence and cooperation with city officials in Alpine to obtain all necessary building permits. Peter J. Gineris of CBRE, who brokered the transaction, highlighted Izo Capital's flexibility and ability to manage an expedited approval process, which were crucial factors for the completion of the transaction.
Greenwich, Connecticut-based Izo Capital, founded last year by Porraro and David Israel, aims to close approximately $150 million in loans in 2026. The focus is on multifamily properties in markets with limited supply. Porraro, a veteran with 30 years in the CRE sector, explained that the firm concentrates heavily on "stretch construction loans" that cover up to 80 to 85 per cent of development costs in combination with a preferred equity component. He added that developers today are struggling to raise equity, as it is harder to obtain. While large institutional investors are slowly returning, smaller private developers of projects valued between $25 million and $50 million are contending to bridge this gap.
