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HOUSTON-Local developer Michael Stevens Interests Inc. has obtained $61.5 million in a refinancing package for a 1,976-unit portfolio, comprised of nine properties in the Houston area and one in Dallas.

The developer acquired the properties between 1992 and 2001, Mark Sixour of the Houston office of Dallas-based Holliday Fenoglio Fowler LP tells GlobeSt.com. Sixour arranged the financing through PPM Worldwide, a Chicago-based life insurance company. The loans bear five-year terms.

The portfolio’s average occupancy is 90%. The complexes were built between the late 1970s and late 1980s. The Houston properties are Chasewood Apartments at 9717 Cypresswood Dr.; Cape Colony Apartments at 15035 Westpark Dr.; Oaks of Charleston at 10760 Main St.; Point Windmill Lakes at 10280 Windmill Lakes Blvd.; and the Crest Apartments at 2300 Wilcrest Dr. In nearby Rosenberg, the refinanced complexes are Carriage Glen at 1811 City Hall Dr. and Bayou Bend at 2901 Airport Ave. while the other South Texas holdings are Stafford Run at 550 Stafford Run in Stafford and Fountain Woods Apartments at 3565 Delaware St. in Beaumont. The lone Dallas property is Parkford Oaks Apartments at 3443 Mahanna St.

Sixour says Michael Stevens Interests’ total portfolio contains about 5,000 units in Texas. According to Sixour, the properties were originally financed through Bank United and bounced to Washington Mutual after the banks merged.

The owner obtained new financing to obtain full leverage of almost 80%, take advantage of attractive interest rates and generally achieve greater flexibility in their financing, Sixour says. PPM Worldwide, in recent months, also put up $44 million in refinancing for six other Houston and Dallas assets owned by Michael Stevens Interests.

The disposition market has been spotty thus far this year, Sixour says. Still, there’s plenty of capital, but underwriting is just tighter these days and keeping the deal flow down. He predicts sales will pick up, if the current reading of buyers’ interest is correct.

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