X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

HOUSTON-A joint venture between a local developer and Harris County Housing Authority has obtained more than $10 million in construction financing for Waterside Court. The 118-unit affordable housing project is expected to break ground before the year ends.

Waterside Court is the second collaboration between Hettig/Kahn Development Corp. and the housing authority. “Equity for the property was raised through tax credits allocated by the federal and state governments and it’s fairly substantial,” says Don Hickey, principal with iCap Realty Advisors of the Woodlands, TX. The authority also is providing an additional $1.9 million in funding for the 24.6-acre project in the 500 block of West Road, which will deliver in late 2007.

Hickey tells GlobeSt.com that the affordable housing project requires a different loan structure than a typical multifamily financing project. “It can’t be valued in the same way. You’re building class A apartments, but they don’t have the same value or rent structure because they’re affordable housing,” he says, adding that debt for such projects generally depends on tax credits and other raised equity. Hickey’s company coordinated debt financing with Brian Stoker of iCap affiliate Amegy Bank.

Hickey declined to discuss specifics of the construction financing loan, but he adds that similar deals can carry a 17-year term, with the interest rate priced over the fixed rate costs of funds.

The iCap team had helped finance the partnership’s first project, the recently completed 100-unit senior housing Baybrook Park in Webster. “The developer is one of the premier developers of this type of property in the state,” Hickey says, “and we have a history with them. We know they do a first-class job.” Likewise, he says Waterside Court’s impact on the neighborhood was also an incentive. “What’s really cool about these types of projects is that they’re providing new housing in a lot of different neighborhoods. It’s something that revitalizes the neighborhoods,” he says.

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. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

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.