Hanover JV Secures $176M Refi for Houston Communities

Hanover Co., in partnership with Lionstone Investments, has received a total of $176 million in refinancing funds for two luxury communities in Houston, according to Yardi Matrix information.

In a deal arranged by JLL Capital Markets, KKR provided the five-year, fixed-rate separate loans for the two properties.

Completed in 2022, Hanover Autry Park and Hanover Parkview were previously subject to a total of $174.8 million in construction financing in 2019, originated by Citizens Financial Group, the same data provider shows.

This year through May, 7,392 units came online in Houston, with an additional 31,492 apartments under construction. Investment in the metro remained limited, with $707 million in assets trading during the first five months of 2024.

Luxury communities near downtown Houston

Located at 811 Buffalo Park Drive, the 24-story Hanover Autry Park comprises 324 units with one- to three-bedroom configurations, ranging from 591 to 3,072 square feet. The community includes 23,000 square feet of ground-floor retail space, 634 parking spots and is currently 92 percent occupied.

The 421-unit Hanover Parkview offers one- and two-bedroom layouts, ranging from 559 to 1,430 square feet. The seven-story building features 24,000 square feet of ground-floor retail and 704 parking spots. The property’s residential component is 95 percent occupied.

Common-area amenities include swimming pools, outdoor grilling areas, social lounges with kitchens, fitness centers, rooftop lounges with bars, as well as washers and dryers in all units.

The two communities are less than 2 miles from Houston’s Memorial Park and some 3 miles from downtown. The Museum of Fine Arts, the University of Houston and Texas Southern University are within 5 miles of the properties.

The JLL Capital Markets Debt Advisory team representing the borrower included Senior Managing Directors Cortney Cole and Colby Mueck, Senior Director Laura Brown and Analysts Davis Burnett and Scot Sarlin.