ACRES Capital Provides $89M Construction Loan for Houston Community
The 17-story building is scheduled for completion in September 2023.
Capitalizing on the demand for housing in Houston, ACRES Capital Corp. has provided an $89 million construction loan for a 67-unit community.
ACRES provided the loan that carries an initial term of 36 months to Pelican Builders and Ranman USA, who will use the financing to construct The Hawthorne. ACRES’ Drew Miller originated the deal while Mission Capital Debt’s Steven Buchwald arranged the loan.
Buchwald said in prepared remarks that it was challenging to arrange the loan being in the COVID-19 pandemic, but that The Hawthorne was a great project backed by premier developers. The developers are expecting to break ground in the last week of August or the first week of September with an expected completion in September 2023, ACRES told Multi-Housing News.
The 17-story community will offer 67 units in two- and three-bedroom floorplans that range from 1,517 to 3,525 square feet. The Hawthorne will also include a pool, fitness center, dog park and washing station, resident lounge and guest suites. The community totals 164,546 rentable square feet with an additional 19,712 square feet of outdoor space, 178 parking spaces and 67 storage units.
Located at 5656 San Felipe St. in the Galleria submarket of Houston, The Hawthorne is roughly 10 miles away from the city’s downtown. The community is also located near the Interstate 610 loop that surrounds Houston.
HIGH HOUSING DEMAND IN HOUSTON
Mark Fogel, president & CEO of ACRES, said in prepared remarks that Houston is experiencing one of the highest demand housing markets the city has ever seen. Fogel added in his prepared remarks that there’s demand within the city for new housing and alternatives to traditional, single-family homes.
Fogel also said in prepared remarks that Texas, particularly Houston, has been benefiting from the strong population growth in the Sunbelt region of the U.S. In February 2020, ACRES also provided a $49 million construction loan that will be used to complete a 229-unit community in Houston. Fogel added in his prepared statement that ACRES doesn’t expect this growth in the Sunbelt to slow down as people are trending towards a higher quality of life and more breathing room.