Forestar Group Sells 289-Unit Austin Asset
- Jun 10, 2013
Austin, Texas—The Forestar Group has completed its disposition of Promesa, a 289-unit community located in Austin, Texas. The property was picked up by a large pension fund advisor. ARA represented Forestar in the sale on the 2012-built asset.
“Promesa was sought after by institutional and private fund investors seeking a core investment opportunity,” says Patton Jones, principal at ARA. “Investors were drawn to the outstanding product finishes, affluent demographics and good schools in this West Austin location.”
Community amenities at the property include a swimming pool, fitness center, fireside lounge and grilling area. In addition, Promesa is surrounded by 5,000 acres of the Balcones Canyonlands Preserve. Occupancy was 82 percent at the time of sale, and the property was in the final stage of its initial lease-up at the time.
Transwestern brokers 378-unit sale in Houston
Houston—Transwestern has completed the sale of Arbor Ridge, a 378-unit community located on the north side of Houston. The property was purchased for an undisclosed amount by Threshold Capital, a private investment group. Transwestern represented the seller, HIG Realty Partners, in the transaction.
“Demand for assets with a value add component remains high as the supply of ‘distressed’ assets tapers off and in place fundamentals continue to be strong,” says Transwestern’s Clint Duncan, vice president of multifamily services.
Aries Capital arranges $7.5M seniors housing construction loan that also funds pre-construction costs
Corpus Christi, Texas—Aries Capital announced that Leonard Smith, senior vice president from the firm’s Houston office, has completed a loan for The Village at Oso Bay, a newly planned 56-unit memory care community in Corpus Christi, Texas. The loan is valued at $7.5 million.
The Village of Oso Bay is a development of Thrive Senior Living LLC, which is based in Atlanta. Thrive owns and operates a number of senior care facilities throughout Georgia, Texas and Florida.
“We are excited to begin construction on our new community in Corpus Christi which will offer compassionate and innovative care,” says Jeramy Ragsdale, founder, Thrive Senior Living. “Construction loans for ground-up senior living facilities are complex and can be difficult, but as a result of Aries Capital’s market knowledge and Leonard’s persistence, we were able to get this project off the ground.”
The capital structure features a 24-month interest only construction loan and an additional 36 months with a 20-year amortization. The loan-to-value ratio for the transaction was approximately 75 percent.
“The difficulty in sourcing a lender for this type of facility is the start-up costs required by the borrower to cover marketing and presales,” says Smith of Aries Capital. “Many capital sources don’t understand healthcare and aren’t willing to include those items. We worked diligently to pair the project with the right lender that was comfortable with the industry and willing to finance the development.”
The Village of Oso Bay is expected to break ground this year with completion slated in spring of 2014. Ewing Construction will perform the construction services.