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CORPUS CHRISTI, TX-Peek-Howe Real Estate has retired a construction loan less than two years after completing the 274-unit Reserve at Saratoga. The refinance has secured $18.7 million from Freddie Mac.

The Baton Rouge, LA-based developer put a seven-year loan against the 94%-leased complex at 5701 Saratoga Blvd. “They will probably sell it at some point in time, but right now they like the asset, they like the location and are happy with the product they built,” says J. Andrew Scott, managing director for Holliday Fenoglio Fowler LP in Dallas. He arranged financing with a sub-6% fixed-rate interest and a loan to value ratio of 77% to 78%.

Scott says that Peek-Howe typically tries to sell what it builds after it’s completed and stabilized, but it also will hold onto assets until things improve if the timing just isn’t right. “In a market like this, they probably thought it made sense to hold this a little longer instead of selling it right away,” he tells GlobeSt.com.

Situated on about 24 acres, Reserve at Saratoga was completed in 2006. It has one-, two- and three-bedroom units, ranging from 642 sf to 1,230 sf. Rents are $780 to $1,490 per month.

Scott says the loan is Peek-Howe’s first with Freddie Mac, but the builder could obtain more funding from that source for future projects. He says Peek-Howe is has projects in various stages of development and lease-up in strong primary and secondary markets throughout the Southwest and parts of the Southeast.

“They’re very active in management and development and they’re continuing to look for good opportunities,” Scott says. “They build urban and garden-style product in high-growth areas and are just very good at what they do.”

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