Houston Rental Property Acquisition Facilitated by Berkeley Capital
- Oct 31, 2012
Houston, Texas—Berkeley Point Capital LLC recently facilitated Baron Properties’ acquisition of AMLI Towne Square Apartments in Houston. Berkeley provided $40 million in first mortgage proceeds that enabled Baron to acquire the 380-unit, 13-year-old property, which features 22 four-story mid-rise buildings.
The loan was structured under the Fannie Mae Delegated Underwriting and Servicing program as a seven-year, 3.46 percent fixed-rate mortgage with two years interest only and five years yield maintenance, then par.
Baron Properties holds a major industrial portfolio in Houston, and has substantial multifamily operations in Colorado and Arizona. However, this is the first multifamily community the company has acquired in Houston.
AMLI Towne Square Apartments, which will be renamed Standard on West Dallas, provides one-, two- and three-bedroom apartments with luxury features like hardwood floors, 9- and 10-foot ceilings, kitchens with wrap-around breakfast bars, garden tubs, in-unit washers and dryers and, in selected units, built-in desks.
Common area amenities include a fitness center, clubhouse, pool, business center, solariums, manicured tropical landscaped grounds and conference space.
Baron Properties plans a $4.4 million capital improvement program for the property, located at 2210 West Dallas St. in Houston. Common-area amenities will be upgraded, and interior improvements undertaken. Unit interior upgrades will include the addition of granite countertops, stainless steel appliances, faux wood floors throughout kitchen and dining areas, custom cabinetry, brushed nickel hardware and modern lighting packages.
Ed Belz, managing director of the Boston office of Berkeley Point Capital, led the transaction for the Berkeley Point team. “The Berkeley Point team delivered as seamless an execution as it gets,” said Jeff Riggs, Baron Properties principal. “Ed is a team player, and a pro. The entire Berkeley team did a top-notch job start to finish.”
The acquisition of AMLI Towne Square Apartments is the 14th multifamily loan transaction between Berkeley Point Capital and Baron Properties.