Vero Capital Refis 400-Plus Units in Houston
The financing infusion will allow the developer to continue making upgrades at the property.
Vero Capital has closed on an $86 million refinancing loan for Us Bayou Park, a 404-unit luxury multifamily property located in Houston’s Montrose neighborhood. The funding package was provided by Siguler Guff & Co., LP and Benefit Street Partners.
A $58.5 million five-year senior loan was provided by Benefit Street Partners, a credit-focused alternative asset management firm. Siguler Guff, a multi-strategy private markets investment firm, originated a $27.5 million mezzanine loan.
Operating as Us Living under the firm’s Vero Sade arm, Vero Capital acquired Bayou Park in September 2021. The firm plans to use the refinancing to continue upgrades and long-term value creation initiatives at the property. The recapitalization includes a holdback facility to fund additional renovations across the residential units.
Jimmy Zumot, managing director & co-portfolio manager, real estate, at Siguler Guff, said in prepared remarks the investment aligns with the firm’s focus on high-quality, differentiated assets in core growth markets. Houston in particular is seeing high demand and low supply due to fewer new construction starts.
Siguler Guff’s real estate team has invested nearly $3.5 billion of equity and debt into real state assets since 2009. The investment firm has approximately $17 billion in assets under management.
Property details
Located at 2221 W. Dallas St., the property is managed by Kairoi Residential. According to Yardi Research Data, Us Living, part of Vero Capital’s multifamily platform Vero Sade, paid an estimated $85.3 million for the asset, then known as City Vista. AMLI Residential had owned the property since acquiring it for $65 million from Zoontz Corp. in October 2010, the same source shows.
The 5.74-acre community has two four-story buildings and a mix of one- and two-bedroom units ranging in size from 691 to 1,454 square feet, averaging 954 square feet. Rents range from $1,647 to $2,768 with an average of $1,988, according to Yardi Research Data.
The property is operated under Vero’s Us Living lifestyle platform that offers high-end amenities and programming that cater to Houston’s growing population of professionals seeking community-oriented, active urban living. Unit features include washers and dryers and hardwood floors. Community amenities include two resort-style pools, a clubhouse, fitness center, business center with coworking lounges, curated residential programming and onsite dining and retail partnerships.
Us Bayou Park is situated 8 minutes from downtown Houston and near the Buffalo Bayou Park, a 160-acre green space that has gardens, hiking and biking trails. The community is proximate to popular neighborhoods and employers such as the Museum District, Upper Kirby, Greenway Plaza, The Heights and Texas Medical Center.
In August 2024, Vero Sade opened two additional properties under its Us Living hospitality-driven platform in Texas. Us 1604 and Us Cibolo were the first ground-up developments in the company’s portfolio. With a total of 732 units, the communities are both located in the San Antonio metro.
Longtime financing partners
Benefit Street Partners, a wholly owned subsidiary of Franklin Templeton, and Siguler Guff have originated several other financing packages together recently.
Last week, the firms announced the closing of two loans totaling $34 million to refinance construction financing for The Zoe, a newly-built 214-luxury apartment community developed by Surge Investment Group in Waco, Texas, following its stabilization. Siguler Guff originated a $11 million mezzanine loan and Benefit Street Partners provided a $23 million senior loan. The Zoe, which is managed by Asset Living, is located within 5 minutes of Baylor University.
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In late August, the firms provided HMF Americana with $113.5 million in construction financing to develop two built-to-rent communities with a total of 575 units near Houston and Greenville, S.C., according to Commercial Observer. The transaction, which was arranged by Sterling Realty Capital, is structured as an $83.8 million senior note and $29.7 million B-piece, CO reported. HMF Americana will build The Cottage Green Tomball near Houston in Tomball, Texas and The Cottage Green Simpsonville, about 15 miles south of Greenville.
