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HOUSTON-A San Antonio multifamily developer, working with capital from a California-based 1031 Exchange syndicate, has spent about $26 million for two class A assets, totaling 396 units, in Houston.

Internacional Realty bought the 216-unit Seasons at 6969 Hollister St. in the northwest submarket from San Francisco-based Rreef for slightly more than $13 million. The buyer also spent just a bit less than $13 million for the 180-unit Savoy at 5500 Sampson St. in the Houston Medical Center District, taking that deed from Jenard Gross Investments of Houston. Internacional Realty is teaming with US Advisors of Napa Valley on the acquisitions, with a hard focus on Texas and Florida markets.

Frank Satterfield, senior vice president, and Matt Franke, both with Kinghorn, Driver, Hough & Co. in Houston arranged loans for both acquisitions with PNC Real Estate Finance. The 92%-leased Seasons, built in 1994 on six acres, leveraged a $10.5-million loan while the 98%-occupied Savoy stood as collateral for a $10.2-million transaction.

Satterfield tells GlobeSt.com that Internacional Realty made an offer on the Seasons about a year ago, but it went under contract to another. When that deal fell through, Internacional Realty jumped at the chance to buy the Seasons because it neighbored two properties–470 units at Beverly Wilshire and Hollister Place–that it bought in the interim. The buyer, Satterfield points out, was seeking the administrative economy of scale that goes along with a critical mass.

Satterfield says the Seasons’ loan had an 80% loan-to-value ratio and 30-year amortization in a sale brokered by Southwest Residential Partners Inc. of Houston. According to the Harris County Appraisal District, the complex is assessed at $10.4 million.

The Savoy is a new complex situated on about six acres. The county puts its value at $10.9 million. The Savoy’s loan had an 80% loan-to-value ratio and also amortizes over 30 years, says Satterfield who brokered the sale.

Satterfield says PNC has financed six acquisitions in the last 18 months for Internacional Realty. In sync with the Houston deal making, the group also bought the 334-unit Court Village Apartments in Clearwater, FL., and 288-unit Chasco Woods Apartments in Port Richey, FL. And, Satterfield confides, Internacional Realty, also an multifamily manager as well as developer and investor, has a letter of intent out on a major Houston property, but it’s too preliminary to talk details.

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