Choice Condominiums has penciled a two-year plan for the conversion of 2400 McCue Rd., bought from a local partnership ending a five-year hold. John R. Markowicz, senior vice president of Chicago-based Corus Bank, tells GlobeSt.com that the condo process will be completed in 60 days to open the door for the standard takedown as leases expire. He says an escrow pool was carved out to cover costs for marketing, minor exterior changes and allow for unit upgrades. The two-year loan is interest only at a Libor-based floating rate that kicks in at sub-6%, according to Markowicz.
The complex, more than 90% occupied at sale time, has seven three-bedroom apartments and the balance is a 50-50% split of one- and two-bedroom units. The apartments average 1,060 sf and bring in $1.43 per sf for monthly rents, Markowicz says.
The 2400 McCue project, built two years ago on 2.7 acres, is a four-story building with one level of underground parking. Harris County Appraisal District has levied a $14.3-million assessment on the gated complex, with a courtyard swimming pool, fountains and clubhouse.
Markowicz says the prior lender-borrower relationship drove an easy closing process for the latest transaction. Choice Condominiums' execs previously tapped Corus capital for conversions of City Plaza at 1330 Old Spanish Trail, Oaks at West University at 4000 Law St. and Reata at 3232 Allen Parkway.
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