HOUSTON-Copperfield Venture LLC, a subsidiary of a local developer, has obtained $19.8 million to pay off construction debt for the Club at Copperleaf, a 240-unit, class A development in northwest Houston.
"This was remaining from construction in 2003," explains Tucker Knight, a director in Holliday Fenoglio Fowler LP's Houston office. "They wanted to take advantage of the low interest rate." The Club at Copperleaf at 14811 West Rd. is 90% leased.
Knight, who arranged the financing, tells GlobeSt.com that the deal consisted of two loans: $17.48 million for 10 years, with a fixed-rate interest of just over 5% from conduit lender Banc of America Securities in New York City; and a mezzanine piece for nearly $2.32 million, provided by Boston-based Tremont Realty Capital. The main loan swings to a 30-year amortization after a five-year interest-only period. The loan-to-value ratio was "85% or 90%," according to Knight.
"This was a pretty aggressive loan," Knight says. "This wasn't difficult to place at all and we had everyone interested in it. We just had to narrow this down to the most competitive rate in the market. Banc of America really stepped up to it."
The Club at Copperleaf contains 126 one-bedroom units, 78 two-bedroom apartments and 36 three-bedroom designs, ranging from 650 sf to 1,570 sf. Rents run from $689 to $1455 per month.
"We've done a lot of high-leverage multifamily loans this year," Knight says. "With interest rates as low as they've been in 40 years, everyone is trying to lock in their debt for as long as they can. By refinancing now, many owners are finding the numbers are prudent."
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