Houston Community Receives $26M Loan
- Mar 22, 2019
A joint venture between Blue Magma Residential and Auerbach Opportunity Fund II has purchased Park Texas Apartments, a 587-unit multifamily property in Houston. Eastern Union secured a $26 million bridge loan held by Arbor Realty Trust to support the acquisition and redevelopment of the garden-style community. The amount represents 75 percent of the purchase price and all the capital expenditures associated with the makeover.
Located at 11911 Martin Luther King Jr. Blvd., Park Texas is 11 miles south of downtown Houston. Completed in 1970, the community encompasses 476,941 square feet of rentable space across 51 two-story buildings. According to Yardi Matrix data, the one-, two- and three-bedroom units average 807 square feet. Common-area amenities include controlled access, a business center, a basketball court and six laundry facilities. The asset was damaged during Hurricane Ike in 2008, but it is currently undergoing extensive capital improvements. At the time of the sale, Park Texas had a 50 percent occupancy rate.
Eastern Union’s Michael Wyne, a member of Eastern Union’s Capital Markets unit, and Boruch Mandel secured the financing on behalf of the buyer. In late 2018, Eastern Union also arranged a construction loan for a mixed-use development featuring 117 luxury apartments in Washington, D.C.
Image courtesy of Yardi Matrix