Energy Industry Sees Slow Recovery, Equaling Capital Activity

Villas at Foxbrick is approximately 21 miles north of Houston’s central business district.

HUMBLE, TX—More than five years after the end of the recession, the national economy is on a trajectory of slow, but sustained, economic expansion. The energy industry will enter a slow recovery period as crude oil prices bottomed out at the beginning of the year and have gradually risen from the floor position. With national unemployment at 5%, there is little slack left in the labor market, which should begin to drive stronger wage growth, according to Delta Associates. Looking forward, Delta expects a modest increase in GDP during 2016 driven largely by consumer spending and hiring.

That sustained expansion leads to employment and housing growth, such as the refinancing of second-tier market multifamily assets. This type of product is found in the garden-style multifamily complex at 7150 Foxbrick Ln., Villas at Foxbrick. Hunt Mortgage Group recently provided an $11.6 million Fannie Mae loan to refinance the property consisting of 11 two- and three-story residential buildings.