Houston—Trinsic Residential Group has obtained an unspecified amount of financing for Aura Memorial, a 388-unit, apartment community in Houston. The property is at 14900 Memorial Drive between North Eldridge Parkway and Dairy Ashford Road in West Houston, in a district known as the Energy Corridor for its concentration of oil- and gas-industry companies.
Completed in 2014, the wrap-style community includes one- and two-bedroom floor plans ranging from 705 square feet to 1,338 square feet. Common amenities include a resort-style swimming pool with sundeck and grill area; activity courtyard with an outdoor kitchen, bocce ball court; covered lounge area with TV and billiards table; fitness center; cyber café with entertainment kitchen; business center; private conference room; and dog run.
Working on behalf of the borrower, HFF placed the seven-year, floating-rate loan through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program. The HFF debt placement team representing the borrower was led by senior managing director Matt Kafka.
Houston’s been seeing a large influx of new apartments lately, especially higher-end units, even though job creation in the region isn’t what it used to be — the energy sector, still an important component of the metro Houston economy, is in a down cycle. Even so, the market’s apartment fundamentals are still fairly strong.
Marcus & Millichap reported recently that developers are on track to complete 24,500 new apartment units this year, expanding the local for-rent housing stock by 3.9 percent, compared with 2015. This includes affordable and seniors housing, in addition to 23,000 market-rate rentals. Last year, builders brought 15,300 apartments online.
Apartment development initiated during booming employment will create headwinds to vacancy compressing this year, the company noted. Metro Houston’s apartment vacancy rate will inch up 30 basis points to 6.5 percent, for a second consecutive year of gains. Last year, vacancy rose 40 basis points.