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HOUSTON-A California multifamily owner has secured a $4.5-million loan for the 174-unit Hammerly Villa Apartments in Houston to replace interim financing for its acquisition three years ago and subsequent renovation.

Skyline Holdings of Cowan Heights, south of Los Angeles, obtained the financing through Mineola, NY-based PW Funding Inc., a subsidiary of Charter Municipal Mortgage Acceptance Co. The 30-year-old Hammerly Villa at 10011 Hammerly Blvd. on the west side of town collateralized a 10-year loan with 30-year amortization at a 4.6% interest rate. The loan, representing an 80% loan-to-value ratio, has a 1.64x debt service coverage.

Robert T. Walsh in PW Funding’s New York City office, the loan originator, tells GlobeSt.com that the class B complex was bought in 2000 and underwent 15 months of renovations. He says the PW Funding loan replaces interim financing that covered costs for the acquisition and renovation, marking the sixth loan that the firm’s provided for the borrower.

The 93%-leased Hammerly Villa, sitting on nearly six acres, is assessed at $3.5 million by the Harris County Appraisal District. The 14 buildings have units with one, two and three bedrooms that rent for $400 to $740 per month.

Walsh says the borrower owns 12 other multifamily assets in Houston. Hammerly Villa is situated in the Spring Branch submarket, one of the region’s strongest in Walsh’s opinion. The loan was further cemented by PW Funding’s outlook for Houston and a stronger multifamily performance than what exists in many major markets.

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