LMI Secures $45M in Loans in the Greater Houston Area

PASADENA, LEAGUE CITY and HOUSTON, TEXAS — LMI Capital has secured five loans totaling $45 million in the Houston area. The assets are spread across the metro area, with three situated south of the city, one centrally located and one in west Houston. The first transaction to close was a five-year, fixed-rate loan for a 415-unit apartment community in the Brookhollow submarket of Houston. Jamie Mullin of LMI Capital procured the $17 million loan that will fund a multimillion-dollar rehab component, as well as additional earn-out proceeds. Financing terms include a 5 percent fixed interest rate, two years of interest-only payments and a flexible prepayment structure. The south Houston transactions were sourced by Brandon Brown and Jamie Safier of LMI Capital and include two apartment properties in Pasadena and one in League City. Brandon Brown of LMI closed a second lien that represents 96 percent of the first lien, effectively doubling the existing leverage and allowing the borrower to capture additional equity that has been created over time. The seven-year mortgage was placed on a 90-unit asset in Pasadena. Brown obtained debt for the refinancing of a 125-unit asset in League City. The 10-year Fannie Mae loan features a fixed 4.6 percent interest rate and a five-year interest-only period. The loan provides the borrower with $1 million of cash-out proceeds. A portion of the proceeds will be used for additional upgrades at the property, including adding laundry rooms in select units. Safier placed a 10-year, fixed-rate agency loan for a 115-unit asset in the Pasadena submarket featuring a 4.6 percent interest rate, five years of interest-only payments and step down prepayment. The new mortgage results in cash out proceeds to the borrower that it plans to use for future property acquisitions. Lastly, Brown placed a $17.6 million, 10-year, fixed-rate agency loan for a 440-unit asset in west Houston. The loan features a fixed 4.5 percent interest rate five years of interest-only payments and significant cash-out proceeds to the borrower of over $5 million.