HOUSTON—In the span of four years, much has transpired in the local economy. While the market was going gangbusters back then, the slowdown hit two years ago and a shift occurred.
“Houston was on fire in 2012 to 2014. When oil tanked in 2014, it caused a slowdown,” Chris Warren, vice president at Hunt Mortgage Group, tells GlobeSt.com. “Supply was up and lenders got nervous.”
However, if there was a case study in how the market is turning back around, it's a tenant in common finance loan for a multifamily property. The original loan by Hunt Mortgage Group was closed three years ago and since then, the value has doubled for Oaks of Ashford Apartments.
Hunt recently provided an $11.6 million Fannie Mae loan to facilitate another acquisition of the garden-style apartment community. The property is being acquired from LAB OAKS LP c/o The Lynd Company which purchased the property in August 2013 by five tenants in common. The borrowers are all newly formed LLCs that are managed by Principal La Familia Property Management LLC as a non-member manager. The property has been and will continue to be managed by The Lynd Company, a seller-affiliated management company.
“The TIC arrangement enables the sponsors to preserve the tax benefits of the 1031 exchange,” explains Warren. “The seller invested approximately $750,000 from 2013 to 2016 to renovate the property, including repairing damaged siding and replacing the water heaters in most of the units. In addition, unit upgrades were made in the kitchen, bathroom and living room as units were turned over. The new owner is planning upgrades as well.”
The property consists of 255 units in 22 two-story buildings, a single three-story residential building and a single-story leasing office/clubhouse of similar design. Project amenities include two swimming pools, spa, clubhouse, business center, playground, barbecue grills, two laundry facilities and access gates. The apartment community is located in the Briar Forest/Ashford submarket.
“The property is located an approximate 20-minute drive from the Houston Central Business District, in a growing area of northwest Houston,” added Warren. “All of the principals live in California and the Oaks of Ashford Apartments will be their first investment in Texas. However, they are experienced investors and the property will continue to be managed by The Lynd Company, who has successfully managed it since 2013.”
Lynd has recorded growth from 1,100 apartment units in 1997 to more than 34,000 apartment units today and ranks 34th largest in the United States.
HOUSTON—In the span of four years, much has transpired in the local economy. While the market was going gangbusters back then, the slowdown hit two years ago and a shift occurred.
“Houston was on fire in 2012 to 2014. When oil tanked in 2014, it caused a slowdown,” Chris Warren, vice president at Hunt Mortgage Group, tells GlobeSt.com. “Supply was up and lenders got nervous.”
However, if there was a case study in how the market is turning back around, it's a tenant in common finance loan for a multifamily property. The original loan by Hunt Mortgage Group was closed three years ago and since then, the value has doubled for Oaks of Ashford Apartments.
Hunt recently provided an $11.6 million
“The TIC arrangement enables the sponsors to preserve the tax benefits of the 1031 exchange,” explains Warren. “The seller invested approximately $750,000 from 2013 to 2016 to renovate the property, including repairing damaged siding and replacing the water heaters in most of the units. In addition, unit upgrades were made in the kitchen, bathroom and living room as units were turned over. The new owner is planning upgrades as well.”
The property consists of 255 units in 22 two-story buildings, a single three-story residential building and a single-story leasing office/clubhouse of similar design. Project amenities include two swimming pools, spa, clubhouse, business center, playground, barbecue grills, two laundry facilities and access gates. The apartment community is located in the Briar Forest/Ashford submarket.
“The property is located an approximate 20-minute drive from the Houston Central Business District, in a growing area of northwest Houston,” added Warren. “All of the principals live in California and the Oaks of Ashford Apartments will be their first investment in Texas. However, they are experienced investors and the property will continue to be managed by The Lynd Company, who has successfully managed it since 2013.”
Lynd has recorded growth from 1,100 apartment units in 1997 to more than 34,000 apartment units today and ranks 34th largest in the United States.
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