RJC Holdings Inc. secured the loan, with a 30-year amortization and 6.51% fixed-rate interest, with the One Pine Apartments at 4300 Sherwood Lane. James Mayfield, director in Dallas for the Uniondale, NY-based Arbor Commercial Mortgage, tells GlobeSt.com that the private investor, a client of Interurban Corp., sold two complexes in the metro region and held onto what is considered "his flagship" to gather enough capital to buy a larger multifamily property. "He was mainly refinancing so he could get the cash to expand his portfolio," Mayfield says.
Borrower RJC Holdings of Katy got the capital, with a 79% loan-to-value ratio, under Fannie Mae's 3MaxExpress product line, a niche program with a streamlined process for less than $3 million, according to Mayfield. RJC Holdings set aside some cash for minimal upgrades to an already renovated, 34-year-old development, assessed at $2.3 million by Harris County. The local investor bought the 3.5-acre property seven years ago.
Mayfield says the class C complex was 90% occupied when the loan closed. Positioned northwest of the Houston CBD and right at the border of the 610 Loop, One Pine Apartments contains 106 one-bedroom units, ranging from 550 sf to 850 sf; 28 two-room apartments in 1,000 sf and 1,125 sf floor plans; and two three-bedroom designs with 1,160 sf. Rents run from $380 to $700 per month.
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