Mike Brandenberger, vice president of commercial loan origination for Malone Mortgage Co., arranged the project's partial financing through HUD's 221 (d)(4) Multifamily Accelerated Processing program for developer, Wenson & Associates of Austin. The 16-story high-rise at 302 Cypress, the city's tallest building, is a key component for the revitalization initiative now marking its 10th year, Brandenberger says. Other shops and office buildings have been completed, but the Hotel Wooten Apartments makeover is one of the largest undertakings to date.
The fully assumable, 40-year HUD loan represents 35% of the cost for a project, which has garnered historic tax credits and city and private contributions as it worked through the system in the two years since Wenson's owned it. The loan carries a 5.87% interest rate.
Work has just kicked off to retool the former 200-room hotel into a residential property with 55 units and 8,000 sf of street-level retail space. The market-rate units will average 930 sf and rent for $950 per month. "It may be high rent in relationship to other multifamily in Abilene," Brandenberger tells GlobeSt.com, "but this is a boutique product that's going to appeal to lifestyle renters."
Developer of record, Wenson Wooten Ltd., will build out the former Abilene Towers with one- and two-bedroom units. The project includes a three-level parking garage plus third-floor fitness center. Designed by White Rock Studio LLC of Dallas, the complex is set to deliver in April 2004. First retooled into apartments in 1963, the hotel was built and paid for in cash by grocery magnate, H.O. Wooten, according to published accounts.
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