TODAY: Capital One Bank Closes Loans Totaling $74M to Refinance Two Houston Apartment Communities
- Oct 23, 2014
New York–Capital One Bank announced that it has provided loans totaling $74 million to refinance two Houston apartment communities, the San Cierra Apartments, a 362-unit garden-style community, and North Post Oak Lofts, a 330-unit mid-rise. John Reichenbach, senior vice president and South-Central market manager, and Clay Wright, senior vice president and relationship manager in Capital One Commercial Real Estate’s Houston office, originated the transaction.
The sponsor, Sueba USA, has developed 8,400 apartment units over the past 30 years, along with several retail and commercial properties. The financing will be used to generate cash proceeds to recapitalize the two communities.
“We have developed a close and productive working relationship with the Sueba team,” says Reichenbach. “The insights we have gained helped us to structure a transaction that complements the company’s strategic goals.”
“The Capital One Bank team coordinated the financial solution we needed,” says John Leonard, Sueba USA’s chief financial officer. “We were impressed with their dedication to developing and completing a tailored financing solution that suits our needs.”
Sueba developed San Cierra in 2008 and North Post Oak Lofts in 2009, both as Class A properties. San Cierra’s amenities include controlled access with overnight security guard, clubhouse with kitchen and social center, resort-style pool with hot tub and spray park, 24-seat theater room, poolside athletic center, business center and Internet café. Its apartments feature granite countertops, ceramic tile, crown molding, full sized washers and dryers, intrusion alarms and private patios or balconies.
The amenities at North Post Oak Lofts include a pool, spa, fitness center, clubhouse, business center, gated entrance and onsite security. Unit amenities include a private balcony, intrusion alarm, washer/dryer and granite countertops.
Grandbridge finances $4.8M apartment community at sub-4 percent interest rate
Minneapolis—Grandbridge Real Estate Capital recently closed a $4.8 million first mortgage loan secured by a 75-unit apartment complex in Eden Prairie, Minn. Minneapolis-based Tony Carlson originated the refinance transaction.
Funding for the fixed rate loan was provided by a life insurance company and featured a fixed rate for the 10-year term with a 20-year amortization. The loan required no personal guaranty and closed with an interest rate below 4 percent. The borrower utilized loan proceeds to retire existing recourse debt.
Grandbridge successfully worked with the borrower and lender to structure the transaction to meet the borrower’s objectives. This enabled the borrower to accomplish all of his refinance goals including fixing the rate for a 10-year term at a low interest rate.
“The loan funded on time and met our repeat client’s timing objectives,” explained Carlson. The garden style community, a mix of very spacious one-, two- and three-bedroom units, was 100 percent occupied at closing.