HOUSTON-Beech Street Capital has arranged a 10-year Freddie Mac CME loan toward the acquisition of the 244-unit Westheimer apartment property here, GlobeSt.com has learned exclusively. The $30.9-million loan to US Real Estate Investment Fund is interest-only with a 30-year amortizing schedule.
Industry data indicate that US REIF, managed by Boston-based Intercontinental Real Estate Corp., paid a total of about $48 million to buy the five-year-old luxury midrise from BlackRock. It’s the first deal in both the Houston area and the multifamily space for US REIF, although previous Intercontinental funds have invested in Texas and apartments.
For Beech Street, as well, it was a first-time experience working with US REIF, although the lender had closed deals previously with Peter Palandjian, the chairman and CEO of Intercontinental. “The borrower was attempting to strike a balance between maintaining a low overall leverage position for the fund, while maximizing the cash-on-cash yield for its investors,” says Brian Sykes, SVP of originations in Beech Street’s Boston office, in a release. Beech Street worked with Freddie to structure a 65% LTC/LTV loan.
Located in Houston’s inner loop at 2001 Westheimer Rd., just four miles southwest of the CBD, the Westheimer was built in 2008. Among its amenities, unusual for a property in this location, are a security gate, pool, barbecue plaza, fireplace plaza, storage, coffee bar, massage room, dry cleaning, room service and poolside cabanas.