DLP Capital Refis Houston Portfolio With $118M Note
The company acquired both assets in 2022.
DLP Real Estate Capital Inc. has refinanced two Houston multifamily properties totaling 605 units with an $118 million loan originated by LoanCore Capital. Both properties in the portfolio held within the DLP Housing Fund.
The properties are the 297-unit Elan Memorial Park in the Crestwood/Glen Cove neighbohood and the 308-unit City Park Heights in, located in Houston’s Heights submarket.
The floating-rate loan carries a 36-month initial term with two 12-month extension options and an interest-only payment structure. Elan Memorial Park received an estimated allocation of $57.9 million, based on average value per unit across the portfolio, according to Yardi Matrix data. City Park in the Heights received an estimated allocation of $60.1 million, the same source shows.
DLP Capital’s in-house debt placement team executed the transaction with LoanCore Capital. The team was led by Juan Dominguez, president of real estate management & investments, and Harshit Shihara, director of finance partners & debt placement.
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The refinancing generated $117 million in proceeds at closing, along with an additional $1 million earmarked for future capital expenditures. The transaction is projected to deliver more than $1 million in combined annual interest savings, according to the firm.
Closer look at City Park in the Heights
DLP Capital acquired City Park in the Heights in January 2022 from Kairoi Residential, for an estimated $80.7 million, according to Yardi Matrix. Kairoi Residential had owned the asset since March 2018, when it purchased the asset for an estimated $57.2 million from Alliance Residential Co., the same source reported.
The 10.75-acre property at 1640 E. TC Jester Blvd. has 15 three-story buildings with a mix of one-, two- and three-bedroom apartments ranging in size from 626 to 1,395 square feet, with an average of 836 square feet. Rents range from $1,490 to $2,768, with a mean of $1,648, according to Yardi Matrix data.
All units have stainless steel appliances, granite or quartz countertops, oak or white cabinets, kitchen pantries, washers and dryers, above standard ceiling heights and balconies or patios. Fireplaces are available in select units. Some apartments also have detached garages available for an additional fee.
Community amenities at City Park include controlled access, a fitness center, business center, swimming pool, poolside grills and a pet park. The communityhas a total of 616 parking spaces.
Inside Elan Memorial Park
DLP Capital and ORP Investments acquired Elan Memorial Park in September 2022. Yardi Matrix reported Greystar sold the asset for an estimated $88.7 million. The luxury apartment community has a mix of one-, two- and three-bedroom units ranging in size from 597 to 1,326 square feet, with an average of 859 square feet. Rents range from $1,663 to $2,898, with an average of $1,878, according to Yardi Matrix. Additionally, the community has 17,514 square feet of retail space,
The nine-story building, which opened in 2016, is situated on nearly 4 at 920 Westcott St. in the Neartown-River Oaks submarket. Built in 2016, it is located in a live-work-play district 4 miles from Houston and near the Texas Medical Center.
Apartment features include 10- to 13-foot ceilings, stainless steel appliances, quartz countertops with islands, mosaic tile backsplashes, ceiling fans, built-in desks and bookshelves and in-unit washers and dryers. There are private backyards, patios or balconies in select units.
Elan Memorial Park’s community amenities include controlled access, a rooftop terrace, pool, outdoor kitchen, coffee bar, clubhouse and fitness center. There are 435 parking spaces available in a multi-level structure. Covered parking is available for an additional fee.
