By Anca Gagiuc, Associate Editor
El Paso, Texas—George Smith Partners of Los Angeles arranged the financing for the acquisition of The Preserve at Mesa Hills residential community located in El Paso, Texas. The borrower, a private investor, was undisclosed.
The $10.6 million interest-only CMBS loan closed at a sub-five percent rate with a five-year cap. George Smith Partners Principal David Rifkind and Vice President Ameet Chagan arranged the financing.
“On the surface, this financing was particularly challenging to achieve based on the property’s location in a secondary Texas market,” said Rifkind. “Once we were able to demonstrate the compelling micro economic factors to the lending community, we were able to create strong competition for this loan.”
“This asset is well positioned to leverage current and future renter demand and deliver long-term value,” explained Chagan. “Based on its 100 percent occupancy and in-place market rents, the Class B community delivers stable cash flow, which further bolstered our ability to secure competitive financing.”
The 248-unit Preserve at Mesa Hills is located in El Paso’s northwest submarket and is comprised of nine two-story and five three-story walk-up buildings with one- and two-bedroom apartments. Units feature private patios or balconies and GE appliances, while select units offer vaulted ceilings and wood-burning fireplaces. Community amenities include a resort-style pool with spa and sundeck, fitness center, basketball and volleyball courts, barbecue grills, picnic areas and landscaped courtyards.
“Several cities in Texas have very little exposure to energy sectors and are growing in other diversified industries. El Paso has established itself as the fourth-largest manufacturing hub in North America, and the local healthcare industry is growing rapidly. The city’s skilled labor force, favorable business climate and low cost of living will continue to attract workers and drive demand for rental housing,” added Chagan.