HOUSTON — Burton Construction has begun work on Lockwood Business Park, a 25-acre industrial park located at 13300 Lockwood Drive in Houston. The property will be part of the 4,000-acre Generation Park, which is owned by McCord Development. Energy equipment producer GHX Industrial LLC signed a 143,500-square-foot lease in June to become the park’s anchor tenant.
DALLAS — Westdale Real Estate Investment and Management has received $14.6 million in debt financing for the redevelopment of Mid Elm Lofts, a 29-unit boutique apartment complex located at 1512-1516 Elm St. in Dallas. Justin Laub of Metropolitan Capital Advisors Ltd. arranged the construction financing through an undisclosed, Texas-based bank.
LEWISVILLE, TEXAS — Stream Realty Partners has negotiated a 78,847-square-foot industrial lease at 301 Leora Lane in Lewisville. Blake Kendrick and Eric Crutchfield of Stream represented the landlord, EastGroup Properties. ESRP represented the tenant, Infinite Electronics Inc., an Irvine, Calif.-based supplier of engineering-grade wired and wireless connectivity products.
HOUSTON — The RADCO Cos. has acquired City Gate at Champions, a 278-unit, Class B apartment community situated on 10.6 acres at 12811 Greenwood Forest Drive in Houston. Built in 1978, the property consists of 27 two-story buildings with units averaging 874 square feet each. Amenities include a pool, picnic and grilling area and community clubhouse. The seller and other terms of sale were not disclosed. Atlanta-based RADCO plans to spend approximately $14,500 per unit on capital improvements. BBVA Compass provided debt and capital for the acquisition.
DALLAS AND DENTON, TEXAS — Disney Investment Group (DIG) has sold two shopping centers totaling 58,578 square feet in North Texas for a combined $24 million. The company sold Sprouts Village, a 46,380-square-foot, grocery-anchored center in Denton to The Inland Real Estate Group of Cos. Inc. DIG also sold Midway Plaza, a 12,198-square-foot shopping center in Dallas shadow-anchored by Walmart and Sam’s Club, to a private investor.
SAN ANTONIO — El Paso-based investment firm Mimco Inc. has acquired 5530 Walzem Road, a 100,000-square-foot shopping center in San Antonio. The center is home to tenants such as Melrose Clothing, Freedom Fitness, Octapharma and Taco Bell. With this acquisition, Mimco’s San Antonio portfolio now consists of more than 1 million square feet of shopping centers.
SAN ANTONIO — Hunt Mortgage Group has arranged a $10 million Fannie Mae loan for the acquisition of Richland Apartments, a 192-unit, garden-style multifamily complex located at 7791 Woodchase Drive in San Antonio. The 14-story property features an Internet café, tennis court and an outdoor pool and spa. The 12-year loan was arranged on behalf of Richland Living LLC.
KILLEEN, TEXAS — Retail Solutions has negotiated a 44,580-square-foot retail lease at Wendland Plaza, a shopping center located at 901 S. Fort Hood St. in the Austin metro of Killeen. Tucker Francis of Retail Solutions represented the landlord in the lease negotiations. Joseph Williams of The Woodmont Co. represented the tenant, Altitude Trampoline Park.
TEXAS, FLORIDA, WISCONSIN AND MICHIGAN — KeyBank Real Estate Capital has provided $142.4 million in loans for a six-property affordable housing portfolio across Texas, Florida and the Midwest region. The loans were used for a variety of purposes, including refinancing, acquisitions and renovations. KeyBank provided $115.7 million in Fannie Mae loans for Limestone Canyon, a 260-unit apartment complex, and Parkside Crossing, a 218-unit apartment complex, both located in Austin, Texas; Sendero Ridge, a 384-unit apartment property located in San Antonio, Texas; Arcade Apartments, a 75-unit apartment building in Racine, Wis.; and Pasco Woods, a 200-unit complex in Wesley Chapel, Fla. All properties reserve at least 50 percent of units for tenants making 60 percent or less of the area median income. KeyBank provided an additional $14.8 million bridge-to-HUD loan for Lakestone Apartments in Ann Arbor, Mich. The 144-unit property consists of one-, two- and three-bedroom units designated for those earning 50 to 60 percent of the area median income. Built in 1998, the apartment building features amenities such as a clubhouse, pool, recreation center, basketball court, computer center and laundry facilities. Harmony Housing, a nonprofit organization, was the borrower. KeyBank also provided an $11.9 million loan to the organization to …
For nearly a decade, multifamily financing has had the benefit of the most stable sources of long-term debt, which has kept the investment market strong and the property type in favor. Whether it is agency lending, life company permanent debt or commercial mortgage backed securities (CMBS) financing, there has been a consistent market for multifamily loans throughout the economic recovery. Houston has been the beneficiary of significant capital supporting multifamily investment and development during that time, but there has been some reaction to the slowing growth in the employment market due to the oil and gas commodity price pullback. Construction – New Development The moderate energy downturn in Houston, coupled with the significant new supply of units and softness in specific market segments, has begun to impact the market for multifamily construction loans and joint-venture equity capital. Construction lenders, which normally would be able to make construction loans with 25 percent or less equity, are now requiring up to 40 percent or more equity from developers. Construction loan advance rates have dropped to the 65 percent and below loan-to-cost (LTC) range. Banks have been under pressure to curtail their lending on construction loans and are sensitive to the pressure of …
