Hanover Co. Obtains $67M Loan for Houston Apartment Tower Development
- Oct 07, 2014
Houston—Hanover Co. has secured a $67 million loan to finance Hanover Montrose, a high-rise multifamily rental property under construction at 3400 Montrose Blvd. in Houston. Hanover, a locally based developer, acquired the site late last year from its previous owner, an Israeli investment company.
The tower, at the corner of Montrose and Hawthorne just south of Westheimer, will feature 327 units ranging in size from 500 square feet to about 2,000 square feet. Amenities will include a swimming pool with private cabanas, grilling areas and a green lawn, 24-hour concierge services, business and fitness centers, a private dining room and a screening room.
An outdoor area on the ninth floor will offer views of downtown Houston. The developers decided not to include any retail on the first floor, citing setback requirements as not allowing room for it.
Q10-Kinghorn, Driver, Hough & Co. senior vice president Buddy Hopson secured the construction-to-permanent loan for the property. Financing was provided by a KDH correspondent life company for the Hanover Co. According to Hopson, the construction-to-perm loan structure allowed the borrower to lock in a lower interest rate for the long term; it plans a long-term hold.
Houston is currently seeing a lot of multifamily rental development. According to Marcus & Millichap, developers will deliver about 12,250 new apartment units this year, which reflects an increase from 2013 but is still well below the metro’s most recent peak in 2009, when 20,000 units were completed. Furthermore, relative to Houston’s size, new supply will amount to only a 2 percent increase in local apartment stock this year.