Windsor Village Ltd. of Houston sold the condos to VLB 96 LLC, with both sides represented by Russell Jones and Robert Su with Marcus & Millichap Real Estate Brokerage Co. in Houston. The units, built in 1984 at 12600 S. Gessner Dr., were 90% leased at sale time.
Keith Van Arsdale, director of BMC Capital's Southwest region says acquisition financing was a challenge to place because conventional loans are not typically efficient in such cases. "The conventional loan doesn't allow you to sell off individual units," says Van Arsdale, who helped structure the financing for the borrower. "You end up having to pay off the entire loan. That's a unique property type and we were able to structure this type of financing."
The loan obtained from a California bank had a 10-year term and 30-year amortization, with a fixed rate in the mid-6% range. Van Arsdale tells GlobeSt.com that the flexibility of the loan allows the new owner to sell individual units without a lot of post-closing paperwork or pre-payment penalties. "If he decides he wants to sell just one unit, he can do it and pay the loan down without any penalties," Van Arsdale adds. The just-bought mix has two- and three-bedroom floor plans of 1,091 sf and 1,160 sf.
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