Parse Capital Provides $7.3M Mezz. Piece for Luxury Houston Apartments

Parse Capital partners with JPI Companies on a $37 million Houston development; Capital One closes an $8.8 million refinance for a New Hampshire assisted living community; and ARA's Colorado office handles the $899,000 sale of a 14-Unit townhome community in Colorado Springs, Colo.

Parse_JPIHouston—A $7.3 million mezzanine investment from Parse Capital is helping a proposed 198-unit luxury development in Houston get off the ground. The $37 million apartment community is being developed in partnership with JPI Companies with a slated completion for the fall of 2015.

“Our ability to offer developers flexibility and certainty of close is key in helping our clients finance multifamily development projects successfully and expeditiously,” says William Trefethen, managing partner of Parse Capital.

The luxury podium-style project will be located in the Jefferson Heights area on the doorstep of downtown Houston.

“JPI’s strategy is to develop high quality multifamily communities in markets supported by strong household formations and job growth,” says Ben Montgomery, SPI Southern Region managing partner.

Capital One closes $8.8M for New Hampshire assisted living

Wheelock Terrace

Hanover, N.H.—Capital One Specialty Healthcare Real Estate has provided an $8.8 million HUD 232/223(a)(7) loan to refinance Wheelock Terrace, a 70-bed assisted living community in Hanover, N.H. The asset, which also provides memory care services, is owned by Terrace Communities.

This is one of three transactions that Carolyn Whatley’s Capital One Multifamily team has underwritten simultaneously for the borrower. The others include Tequesta Terrace in Tequesta, Fla., and Windham Terrace in Windham, N.H.

“It made sense from both an operational and financial standpoint for the owners to refinance all three properties at the same time,” Whatley says. “Because of the professionalism of our team and the processes we have in place, we’re as comfortable working on portfolios of properties as we are on an individual  property.”

The loan reduced the owner’s interest rate by almost 1.5 percent, producing annual debt service savings of $90,000. The refinancing also allowed the owners to make improvements to the units, purchase a generator, and fund replacement reserve accounts.

ARA Colorado handles $899K sale of 14-unit townhome community

DrakestoneColorado Springs, Colo.—ARA recently brokered the sale of the 14-unit Drakestone Townhomes in Colorado Springs, Colo.

ARA Colorado’s Saul Levy and Kevin McKenna represented the seller, Scott Gray, a local private investor in the transaction. Inge Wartian, a private investor from California, purchased the property for $899,000, representing a price per unit of $64,214 or $74.84 per square foot. Drakestone is her first acquisition in the Colorado Springs market.

Levy explained, “Drakestone Townhomes provided a rare opportunity to acquire a property adjacent to a major community development. The Ivywild School has sparked a community resurgence and Drakestone Townhomes could be the next big change in the Ivywild area. What was once a vacant elementary school is now a bakery, brewery and community marketplace. The buyers will be able to benefit from the redevelopment’s momentum next door and attract a new resident demographic. The area is changing and will become a key destination for young professionals. The Ivywild School has been open less than a year, so there is still a lot of room on market rents for Drakestone. The sellers were able to achieve a great price and the buyers still have a lot of upside in the rapidly improving area.”

Constructed in 1962, the property offers residents the convenience of their own private entrances to each unit as well as fully enclosed backyards. The highly desirable two-story townhome-style floor plan positions the kitchen and living room on the main-level and both bedrooms and bathrooms upstairs. Beyond the convenience of being adjacent to the new Ivywild School and within walking distance of the Broadmoor Towne Center, the property is within 3.5 miles of Downtown Colorado Springs, Fort Carson and the Broadmoor Hotel enabling residents easy access to the city’s major employers.