Ideal Group Forms Accelerates Construction Timeline Following Fed Rate Cut Decision
Lower borrowing costs unlock $1.2 billion in stalled residential projects
Anderson, South Carolina – (Sept. 22, 2025) – Ideal Group of Companies, Inc. (“Ideal Group” or the “Company”) (OTC: IDGR) a residential and commercial real estate developer, announced today that the Federal Reserve's 25 basis point rate cut creates favorable conditions to accelerate multiple development projects that have been in planning phases throughout 2025.
The rate reduction to 4.00%-4.25% significantly improves project economics for Ideal Group’s development pipeline, as construction loans and permanent financing become more cost-effective. The company maintains a robust project pipeline entitled including residential and commercial use developments across high-growth markets.
Project Acceleration and Market Opportunity
Ideal Group expects to break ground during 2026 on three major residential communities totaling a potential of over 1,000 units, representing a projected $300 million in gross development value. These projects had been slowed due to elevated financing costs that compressed projected returns below the company's minimum thresholds.
Lower interest rates also benefit Ideal Group’s end customers, as improved mortgage affordability expands the potential buyer pool. Housing industry data indicates that a 50 basis point decline in mortgage rates can increase home affordability by 6-8% for median-income buyers.
"The Fed's decisive action removes a significant headwind that has challenged our industry throughout 2025," stated Robert Egeland, President of Ideal Group’s real estate development division. "Our analysis shows that these rate cuts, combined with two additional projected cuts this year, could improve our project IRRs by 180-220 basis points. This creates tremendous value for our shareholders while addressing the critical housing supply shortage in our target markets."
Financial Impact and Growth Strategy
The improved financing environment allows Ideal Group to optimize its capital structure and potentially reduce cost of capital significantly. The company has identified additional acquisition opportunities that become economically attractive under the new rate environment.
Ideal Group's focus on high-demand markets, including South Carolina, Florida and Texas, positions the Company to benefit from both improved affordability and continued population growth in these regions. The company's pre-development pipeline contains an additional $1.2 billion in potential projects that could become viable with further rate reductions.
About Ideal Group of Companies Inc.
Ideal Group of Companies Inc. (idealgroupcorp.com) is a diversified real estate and financing company. Its real estate development division under the brand Eclipse Real Estate Development is engaged in acquiring, developing, and operating multifamily, mixed-use, commercial, and residential real estate, vacation rentals, RV resorts, and housing development projects. Its mortgage brokerage division under Oxygen Mortgage Inc.provides consumer mortgage services and, through Oxygen Commercial, provides financing for commercial projects. For more information, visit idealgroupcorp.com.
Contacts:
Ideal Group of Companies Inc.
Tel. +1-864-345-8698
Charles Cardona, CEO
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Certain statements contained herein are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and such Forward-Looking Statements are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to the viability of the Company’s business plans, the effect of acquisitions on our profitability, the effectiveness, profitability, and the marketability of the Company’s products; the Company’s ability to protect its proprietary information; general economic and business conditions; and the volatility of the Company’s operating results and financial condition. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, management cannot assure the public that their expectations will turn out to be correct. Investors are cautioned that actual results may differ materially from the anticipated results.