The borrower of record, Weslayan Residential LP, obtained an 18-month loan from Corus Bank for the undertaking plus took out mezzanine financing, John R. Markowicz, Corus Bank's senior vice president, tells GlobeSt.com. Weslayan Oaks will be the group's second Houston project fueled by Corus Bank capital. A conversion also is under way on 240 units in the Medical Center District.
Markowicz says a key part of the conversion strategy is to keep renters in place while selling units in the 90%-occupied property. He won't disclose the selling price, but Harris County pegs the property's value at $2.1 million.
The new owners are planning some minor upgrades, with sales to start immediately. Once 20% or more of the units are committed, there will be a mass closing, according to Markowicz. The average unit size of 840 sf will sell for about $110,000.
Markowicz expects it will take about a year to sell all the units. He believes Weslayan Oaks is only the third condo conversion in Houston, all of which were Corus-funded. Markowicz says an overabundance of condo supply in the early 1980s, and subsequent projects, cut into opportunities for owners to convert existing "for rent" complexes into "for sale" developments.
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