HOUSTON — KeyBank Real Estate Capital has secured a $59.4 million acquisition loan for The Westmore at Bellaire, a 580-unit apartment complex in Houston. Built in 1990, the Class A property comprises 19 three-story buildings. Caleb Marten of KeyBank secured the non-recourse, fixed-rate loan through Fannie Mae’s Green Rewards program. The 10-year loan also includes five years of interest-only payments and a 30-year amortization schedule. The borrower was not disclosed.
AUSTIN, TEXAS — Dallas-based Leon Capital has broken ground on Society, a 262-unit multifamily community located at 6001 S. Congress Ave. in Austin. The property will offer creative office space with a tech lounge, fitness center, pool and outdoor TV lounge. Preleasing is expected to begin in summer 2019, and the first units are slated a fall 2019 delivery. Austin-based Rhode Partners is serving as project architect, and LG Wade Construction is the general contractor.
IRVING, TEXAS — SVN has negotiated the sale of Rock Island Apartments, a 154-unit multifamily property in Irving. The property was built in 1973 and was 98 percent occupied at the time of sale. Byron Griffith of SVN brokered the sale. The Arlington-based buyer will implement a value-add program to the unit interiors and amenities. Other terms of sale and the seller were not disclosed.
ORANGE, TEXAS — Hunt Real Estate Capital has provided a $5.1 million Freddie Mac loan for the refinancing of Terrace Vines Apartments, a 104-unit multifamily asset in Orange, a city in southeast Texas. The seven-year loan features a fixed interest rate and a 30-year amortization schedule. The borrower is QRH Prop One LLC, which purchased the asset in early 2016. The property, which includes amenities such as a pool, playground, business center and dog park, was 99 percent occupied at the time of loan closing.
BEAUMONT, ROCKPORT AND HONDO, TEXAS — Marcus & Millichap has arranged the $5 million sale of a trio of manufactured housing communities totaling 241 homes in Texas. The properties are Wenwood, a 53-home community in Beaumont; Rockport Village, a 73-home asset in the Gulf Coast city of Rockport; and Hondo Villages—Jackson & Sunset, a 115-home property in the San Antonio suburb of Hondo. Jeff Taylor, Douglas Danny and Braeden Jehle of Marcus & Millichap represented the seller and procured the buyer, a partnership and limited liability company, respectively. Both parties requested anonymity.
SEATTLE — KeyBank Community Development Lending & Investment (CDLI) has provided $30.9 million in financing to Community House Mental Health Agency for the construction of two affordable housing properties located at the corner of 23rd and Jackson streets in Seattle. KeyBank funded a $13.6 million construction loan for the development of Judkins Junction, a 74-unit multifamily property. Additional funding was provided by the City of Seattle and King County. The tax credit investor is the National Development Council. KeyBank will also provide the borrower with a $5.6 million private placement permanent loan. Additionally, KeyBank provided a $11.7 million construction loan for the development of Patricia A. Apartments. The property will offer 52 units of permanent supportive housing for individuals with mental illnesses. The City of Seattle, King County and Washington State Housing Trust Fund provided additional funding. Victoria Quinn of KeyBank’s CDLI group arranged the financing for both properties.
PEORIA, ARIZ. — Ready Capital Structured Finance has secured $21.5 million for the refinancing and recapitalization of a multifamily property located in the South Peoria submarket of metro Phoenix. The loan will be used to repay current construction debt, return equity to the undisclosed sponsor and pay for closing costs. Additionally, an earnout is available to the sponsor should certain metrics be achieved. The non-recourse, interest-only, fixed-rate loan features a 36-month term with flexible pre-payment options. At the time of financing, the 153-unit property was 97 percent leased.
LANSING, MICH. — Greystone has provided a $17 million HUD-insured loan for the development of Metro Place Apartments in Lansing. The developer, Y SITE LLC, expects to complete construction of the 145-unit apartment community by the end of 2019. Located at 301 W. Lenawee St., the property will include a mix of studios, one- and two-bedroom units as well as 6,925 square feet of street-level retail space. Lisa Fischman of Greystone originated the loan under the 221(d)(4) construction program. The fixed-rate loan, which is fully amortized over 40 years, provided 80 percent of the project cost and is interest-only during construction. The loan will convert to permanent FHA financing upon completion of the project. Construction is expected to begin this month with the demolition of an existing six-story YMCA building, which has sat vacant since 2003.
To say the multifamily investment market in Dallas-Fort Worth (DFW) is healthy would be an understatement. With nearly 36,000 units across 183 properties sold in the first half of 2018, according to Real Capital Analytics, a more accurate assessment would be that the sector is — figuratively — on fire. Investor demand for workforce housing remains at an all-time high. With strong economic fundamentals, buyers remain bullish on the DFW multifamily market. Historically low interest rates have attributed to cap rate compression as buyers continue to search for value-add opportunities. While cap rates remain compressed, the yields are still very attractive when compared to alternative investment options. With listings averaging more than 125 confidentiality agreements, 20 tours and 15 offers, the competition has become intense. Winning a deal in today’s market takes more than a strong offer — it takes a good reputation, determination and aggression. Buyer Strategy Buyers can differentiate themselves and establish a competitive advantage by having the equity partner, lender, contractors and management company involved in the transaction prior to the initial offer. Sellers have grown accustomed to tight timelines, limited contingencies and significant non-refundable earnest money at contract execution. In this competitive of a market, sellers …
MILFORD, CONN. — NorthMarq Capital has secured a $6.7 million refinancing for Robert Treat Apartments, a 124-unit multifamily community in Milford. The property is located at 30-60 Robert Treat Drive, eight miles northeast of Bridgeport. Robert Ranieri of NorthMarq arranged a fixed-rate loan with a 10-year, interest-only term on behalf of the borrower, Robert Treat Associates LLC. The lender was Freddie Mac.
