X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

RIO GRANDE VALLEY, TX-A multifamily developer, using separate investment partnerships, has secured $19.4 million in permanent financing for a pair of class A properties in McAllen and Brownsville.

The financing from Citigroup Global Markets Inc. of New York City replaced construction loans nearing the end of their terms. The new capital was secured at an interest rate below 5.5%, Yvonne Wallace, managing director in Houston for Holliday Fenoglio Fowler LP, tells GlobeSt.com.

The 232-unit Rincon at 3801 N. McColl Rd. in McAllen is securing a $12.6-million loan with a nine-year term and 30-year amortization for borrower of record, Nolana Ltd., Wallace says. The fully leased complex was built in 2002. The Rincon’s units range from 618 sf to 1,075 sf and rent for $640 to $950 per month.

The 144-unit Las Palmas at 4200 Las Palmas Circle in Brownsville is standing as collateral for a $6.8-million financing package with a five-year term and 30-year amortization for borrower, Resaca de Las Palmas Ltd. Also built in 2002, the gated complex is 97% occupied, with monthly rents ranging from $580 to $845. Units range from 502 sf to 1,075 sf. The Las Palmas and Rincon, both gated communities, were developed by Jenard Gross of Gross Investments, a Houston-based developer with an in-house management company to oversee the product.

According to Wallace, demand for class A properties have experienced “explosive growth” in the Rio Grande Valley, as has business and commerce. Two years ago, apartments and homes accounted for more than half of the $974 million of construction in the Valley.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.