Lewisville, Texas—Metropolitan Capital Advisors Ltd. (MCA) has arranged almost $26 million in first mortgage financing for Phase III of Hebron 121 Station Apartments in Lewisville, Texas, within the Dallas-Ft. Worth metropolitan area. Hebron 121 Station is a Class A multifamily property. When complete it will be comprised of 1,825 apartments and 125,000 square feet of restaurant, medical, office and retail space. MCA arranged the floating rate loan on behalf of multifamily developer Huffines Communities.
The loan has a three-year term with a single one-year extension option at 395 basis points over one-month LIBOR, 70 percent LTV and a 12-month lockout period. Senior director of MCA Roger D. Wyche was responsible for placing the loan.
“The challenge was to find a lender who would finance the property without having the typical amenities such as a clubhouse, leasing center and pool in the collateral if the lender had to foreclose on the property,” Whyche told MHN.
“The lender was able to close on this transaction by getting comfortable the developer controlled all of the common-area amenities for the benefit of all four phases of the development, including the pools, clubhouse, parking, and leasing center.
“The lender was local and familiar with the developer and submarket [and knew] Phases I and II had excellent leasing velocity to get to 95 percent-plus stabilization. Phase III was following the leasing trajectory of the earlier two phases, which showed the strength of the market as well as the acceptance of the product in the market.”
The project is a component of Denton County’s initial Transit-Oriented Development (TOD), with direct access to I-35, Sam Rayburn Tollway (Highway 121) and the Downtown Denton Transit Center serving the Metroplex.
When completed, Hebron 121 Station will be among the largest TODs in the county.