Surge Investment Lands $34M for Texas Community
The bridge loan will help the owner achieve stabilization.
Surge Investment Group has obtained a $34 million bridge loan for Zoe Apartments, a 214-unit multifamily property in Waco, Texas. Concord Summit Capital Managing Director David Larson and Director Keegan Burger arranged the financing on behalf of the borrower.
The company will use the funds to achieve occupancy stabilization. The note will bridge to a long-term, HUD takeout loan in the first quarter of next year, Director Keegan Burger told Multi-Housing News.
The loan includes no exit fee and was structured with an 80 percent loan-to-value ratio. “This marks the fourth transaction between Surge Investment Group and Concord Summit Capital,” said Burger.
Previous financing included a $31 million construction loan from Keystone National Group, originated in November 2022, according to Yardi Matrix information. The community came online last year.
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Sitting on 10 acres at 3801 Meyers Lane, the Central East Texas property is close to Interstate 35 and less than 5 miles from the city center. The Baylor University campus is also within 5 miles, while downtown Dallas is 89 miles northeast.
The community encompasses six three-story buildings with one- and two-bedroom floorplans. Units range from 690 to 927 square feet and have private balconies or patios. Common-area amenities include a swimming pool with pool house, barbecue grilling areas, a clubhouse, two pickleball courts and a dog park. The property also has picnic space and EV charging stations.
Multifamily originations drop year-over-year
Year-over-year, multifamily originations decreased 35 percent in the second quarter of this year, according to a Mortgage Bankers Association report. The dollar volume also declined quarter-over-quarter as of the same period, dropping 41 percent, underscoring recent volatility in multifamily housing finance.
However, large deals still penciled through during this time frame. In June, Nitya Capital obtained a $700 million CMBS refinancing loan for an 18-property portfolio, including multifamily and student housing properties. Citibank provided the senior note.
