The borrower is a private investor from Houston, whose identity is being kept under wraps. The properties are the Keegan's Mill, a 318-unit complex at 11500 Keegan's Ridge, and La Maison, a 132-unit property at 1901 Lakeside Dr. According to Harris County tax records, Keegan's Mill's owner of record is Keegan's Mill Apartments. The asset is assessed at nearly $3 million for 2002. La Maison, owned by Zeeba Properties, carries a $3.4-million assessment.

Sam McHard of the Houston office of Chicago-based Cohen Financial tells GlobeSt.com that the borrower wanted to take advantage of favorable interest rates as well as a secure a more flexible loan. He says the loans have a supplemental funding feature, which opens the door to resize or increase the amount when occupancy or rents increase. "This is an opportunity for the borrower to pull out additional loan proceeds throughout the term of the loan," says McHard. The class B properties have occupancies in the mid-90% range. The private investor has owned the assets for more than five years.

The 10-year loans have 30-year amortization schedules. Each has an 80% LTV with pricing based on the 10-year US Treasury rate.