Houston Community Lands $65M Refi

JLL arranged a seven-year, fixed-rate Freddie Mac loan for the 206-unit Hanover Southampton.
Hanover Southhampton. Image courtesy of JLL

A joint venture between The Hanover Co. and State Farm has received a $65.2 million Freddie Mac loan for Hanover Southampton, a 206-unit community in Houston, public records show. The note carries a fixed interest rate and is set to mature in 2027. At the time of closing, the property had an occupancy rate of 95 percent.

Located at 5122 Morningside Drive, the 12-story building opened its doors in 2015. The unit mix provides one- to three-bedroom floorplans ranging between 680 and 3,059 square feet. The amenity package includes a fitness center, swimming pool on the rooftop, private theater, conference room and bike storage.

Situated in the West University neighborhood, the community is close to Interstate 69 and some 5 miles southwest of downtown Houston. Additionally, the property is within 5 miles from some of the city’s largest employment hubs, including Texas Medical Center, Galleria and Greenway Plaza.

The JLL Capital Markets team which arranged the financing on behalf of the borrower included Director Dustin Selzer and Managing Director Cortney Cole. Earlier this month, a different JLL team secured a $28.1 million Freddie Mac loan for Covenant Capital Group’s acquisition of the Park at Rialto, a 274-unit community in San Antonio.