Houston—HFF has secured acquisition financing for Coles Crossing, a 370-unit, Class A multifamily community in the northwest Houston suburb of Cypress, Texas. HFF worked on behalf of the borrower, Venterra Realty to place the fixed-rate loan through a life company correspondent lender.
The seven-year loan provides for two, one-year extensions and carries a 3.21 percent interest rate for the initial loan term, plus three years of interest-only payments followed by a 30-year amortization.
Located at 12500 Barker Cypress Road, Coles Crossing spans 34.5 acres and is just north of Highway 290. The property is about 26 miles northwest of Houston’s central business district and offers one-, two- and three-bedroom units ranging in size from 678 to 1,376 square feet. Monthly rents start at $895 for a one bedroom, $1,255 for a two bedroom and $1,425 for a three bedroom. The community is pet-friendly and unit features include walk-in closets, private patios or balconies, and in-unit washers and dryers. Amenities include a swimming pool, playground, fitness center, clubhouse, detached garages and gated access. The property was 94 percent occupied at the time of the transaction.
Managing Director Cortney Cole led the HFF debt placement team representing Venterra in the deal.
Venterra Realty specializes in acquiring multifamily communities in the southern United States. The firm currently manages about 17,000 multifamily units across the states of Texas, Florida, Georgia, North Carolina and Tennessee. The company’s portfolio mostly consists of properties in its home state of Texas.
The Houston market continues to experience multifamily demand, despite the increase in supply, according to Marcus & Millichap’s market report for the second quarter of 2016. “Investors remain optimistic about Houston’s long-term economic outlook, chasing multifamily deals in budding submarkets,” the report noted. It added that the buyer pool is shifting from institutional buyers and REITs to private buyers, which can capitalize on Class A and B-plus assets they were priced out of a year ago.