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HOUSTON-The owner of two class C multifamily projects in North Houston has secured $1.7 million from Noble Mortgage & Investments LLC of Houston.

The 168-unit Chelsea North Walk and 64-unit Moritz North Apartments, working to overcome a condemnation order, are owned by Ren-al Rents Inc., a private investor from Salem, OR. Both properties are undergoing a renovation. The first 60 days of the three-year loan, with 20-year amortization, are interest-only during the construction period, Darel Daik, Noble’s CEO, tells GlobeSt.com.

Daik says the private lender attached a 16% interest rate to the loan because the Moritz North Apartments at 1751 Moritz Dr. has a city lien against it. The payment on the loan, which has a 39% loan-to-value ratio, balloons in the third year.

The complex’s occupancy has gone from less than 50% to 90%. “We wanted to help the borrower keep the occupancy momentum, especially since there are very few lenders who would lend to a borrower with a city lien, which Noble was able to overcome with a renovation escrow to close the loan,” Daik said in a press release. The Moritz North, sitting 5.3 acres, has units that average 525 sf.

Chelsea North Walk at 15715 Wagon Rd., positioned on 1.3 acres, has 96 one-bedroom units ranging from 700 sf to 725 sf and 72 two-bedroom units that range from 900 sf to 1,100 sf. The owner bought the asset two years ago and took occupancy from 50% to 82%.

Noble says it will donate a portion of the loan earnings to Child Advocates Inc. of Houston, a volunteer organization for children under protective services.

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