HOUSTON--Hunt Mortgage Group has provided a $44,437,000 Freddie Mac loan to facilitate the acquisition and upgrading of a multifamily property located in The Woodlands, the company exclusively tells GlobeSt.com. 

The Park at Research Forest, a 396-unit apartment complex located at 8900 Research Park Drive, is a master-planned community; the seven-year loan includes full-term interest-only payments.

“The Woodlands is a growing market and has exhibited an increasing demand for high-quality multifamily housing,” says James Kelly, vice president of Hunt Mortgage Group.

The Woodlands is home to several corporate campuses and headquarters; ExxonMobil is relocating its headquarters this spring there, in a move that will bring as many as 15,000 new jobs to the area.

Built in 2001, The Park at Research Forest is comprised of 17 three-story residential apartment buildings plus a two-story leasing office. Property amenities include a clubhouse with a second-floor kitchen and game room, several lounges, a business center, fitness center and Wi-Fi. A resort-style outdoor pool is adjacent to the clubhouse building, with poolside barbeque grills.

The transaction involved a 1031 Exchange and a borrower structure that included three tenants-in-common that were arranged by Southstar Capital Group. 

“The Park at Research Forest is in excellent physical condition,” says Kelly. “However, due to the demand for high-quality apartments, this is a value-add opportunity. The seller invested more than $2.5 million in upgrades to 263 apartments over the past two years and achieved substantial rent increases for those units as a direct result. Based on this success, the loan structure is designed to allow Southstar to complete the upgrades of all remaining units.”