Lone Star Refis Houston Multifamily Properties for $110M
The two communities are part of a 192-acre mixed-use campus.
Lone Star Funds has refinanced a two-property, 731-unit multifamily portfolio across 653,000 square feet in the southwest Houston suburb of Stafford, Texas, with a $110 million, floating-rate, interest-only loan from TPG Real Estate Credit.
Walker & Dunlop Capital Markets Institutional Advisory arranged the loan as exclusive advisor to Lone Star Funds.
The assets—the 346-unit Arc at the Grid and the 385-unit 1879 at the Grid—are located within a 192-acre mixed-use development known as The Grid. Located on the former Texas Instruments campus, the $500 million mixed-use redevelopment includes retail, office and hospitality components.
Hudson Advisors, an affiliate of Lone Star Funds, acquired the assets in January 2022 from JLB Partners for an undisclosed amount. Natixis provided a $98 million loan for the acquisition at that time, according to Yardi Matrix data. The Arc at the Grid received an estimated allocation of roughly $46.4 million, based on average value per unit across the entire portfolio. The 1879 at the Grid property received an estimated $51.6 million in financing based on average value per unit, Yardi Matrix reported.
The Walker & Dunlop team included Senior Managing Directors Dustin Stolly, Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Sean Reimer along with Senior Director Michael Ianno and Analyst Edward Leboyer.
Taking a closer look at Texas properties
Both communities feature a mix of studio, one-, two- and three-bedroom residences with modern finishes and open-concept layouts. Apartments have washers and dryers, as well as patios or balconies.
Amenities include resort-style pools, fitness and wellness centers, resident lounges, coworking spaces, outdoor lounges and courtyards, barbecue areas and fire pits, pet parks, package lockers, detached garages and carports.
Located on 11.66 acres at 11107 W. Airport Blvd., units at 1879 at the Grid range from 529 to 1,646 square feet, with a mean of 894 square feet. Rents range from $1,175 to $2,672, with an average of $1,692, according to Yardi Matrix information. The property is roughly 94 percent occupied, the same source shows. It was built in two phases in 2019.
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Completed in 2021, Arc at the Grid is situated on 36.04 acres at 11101 W. Airport Blvd. Homes range from 572 to 1,654 square feet, with an average of 894 square feet. Rents range from $1,215 to $2,719, with an average of $1,754, according to Yardi Matrix.
The communities are about 18 miles southwest of downtown Houston via Interstate 69, which is less than one mile northwest of the The Grid. Several dining, retail and entertainment options are available within a one-mile radius, including a Walmart Supercenter which is located less than half a mile northwest of both properties.
Located along the U.S. 90A corridor, the communities also offer direct access to the Sam Houston Tollway and Highway 6, providing access to major Houston employment centers including the Texas Medical Center, Uptown/Galleria, Greenway Plaza, downtown Houston and broader Fort Bend County growth corridor.
Active in Sun Belt markets
Last December, Lone Star Funds sold two communities totaling 673 units in Irving, Texas, to KKR, according to Yardi Matrix information. The properties were the 296-unit Eastshore on Lake Carolyn and the 387-unit Promenade on Las Colinas. The sale price was not disclosed, but the buyer received a $118 million loan from Rialto Capital Management, Yardi Matrix reported.
Lone Star Funds acquired the properties, which came online between 2019 and 2020, in two separate transactions from JPI. In February, an affiliate of Lone Star Funds received a $235 million senior mortgage loan from Marathon Asset Management’s Commercial Real Estate platform to refinance an 11-property, 1,563-unit collection of senior housing communities in Texas and Florida. One of the properties is in the Dallas-Fort Worth metro. Most of the assets are located in Florida markets including Tampa, Boca Raton, Sarasota and Naples.
