Houston Property Receives $37M Refi
Arel Capital will use the senior loan provided by PCCP to refinance Bayou on the Bend, a 241-unit multifamily asset in the city’s Memorial neighborhood.
Bayou on the Bend. Image courtesy of PCCP
Real estate finance and investment management firm PCCP, LLC has provided a $36.5 million senior loan for the refinance of Bayou on the Bend, a Class A community in Houston. The financing was arranged by Adam Allen and Ben Johnson of Newmark Knight Frank.
Located at 5201 Memorial Dive in the city’s Memorial neighborhood, Bayou on the Bend is a 241-unit Class A property next to Buffalo Bayou Park. The asset was acquired by New York City, N.Y.-based Arel Capital from Commerce Equities in a transaction that closed in May 2017. Arel Capital recently made news in Houston by acquiring The Heights at 2121, a 504-unit Class C apartment community located in The Heights submarket.
The seven-story building spreads across a 3.6-acre site and is currently 83.1 percent occupied. The community features a blend of studios, one-, two- and three-bedroom units, with rents varying between $1,299 and $3,592, according to Yardi Matrix data.
Bayou on the Bend features a connected parking structure. Among its most noteworthy common-area amenities are kayak and bike rentals.
Near Job Centers
Well located in the Inner Loop-River Oaks submarket, close to Interstate 610 immediately west of downtown Houston, Bayou on the Bend is positioned at the center of desirable residential neighborhoods, job hubs and shopping centers, and offers frontage along both Buffalo Bayou and Memorial Drive.
From Bayou on the Bend, Memorial Drive leads directly into downtown Houston. On Memorial Drive, residents will have a three-mile commute along Memorial Drive to the central business district and its more than 150,000 jobs. The Galleria-Uptown business district is located just a seven-mile commute from the property. Residents are no more than an eight-mile drive to both Texas Medical Center and Greenway Plaza.
Walks or short drives will take residents to a number of attractions. Among them are Washington Avenue’s dining and entertainment offerings, as well as the high-end shopping developments in River Oaks and The Heights. A pair of newly-restored recreational parks are also located in the area.
When Arel Capital acquired Bayou on the Bend in 2017, the firm assumed an existing CMBS loan of $37.7 million that came due this month, according to Yardi Matrix. The bridge loan supplied by PCCP enabled a continuation of the unit interior renovation previously begun by Arel Capital.
Founded in 2013 by a pair of former finance professionals, Arel Capital has since closed 45 transactions in New York City and seven Sunbelt and mid-South cities.
