MF Owners Obtain $41M in ReFi Loans

HOUSTON-Cypress Real Estate Advisors Inc. and partner Preferred Communities Inc. have snagged loans totaling $41.2 million to refinance the 596-unit Promenade at Jersey Village and 264-unit Promenade at Cullen Park. The loans, originated under Freddie Mac’s CME program, will retire bridge loans on the assets.

Promenade at Jersey Village, at 1101 Pleasant Colony Dr., was financed at $29.2 million with a 5.41% interest rate. Meanwhile, Promenade at Cullen Park at 1800 Barker Cypress has the benefit of a 5.52%, $12-million loan. Both are 10-year loans with 30-year amortizations. These loans, according to NorthMarq Capital’s Houston regional vice president Brant C. Smith, give the borrower some breathing room.

“They’ll have the ability to hold these assets longer term now,” says Smith, who arranged the financing. “Anyone who doesn’t have to sell in an environment in which market values are still in question shouldn’t.” He tells GlobeSt.com that the loans are fully assumable with attractive debt terms. “The attractive terms of the debt could add value when they’re ready to sell,” Smith adds.

Austin, TX-based Cypress Real Estate Advisors and Preferred Communities acquired the assets in 2005. Smith says that the partnership has spent the last three years making capital investments in both properties, which allowed them to raise the rents. “These were great sponsors who put money into the properties to bring them close to class-A status,” Smith says. “All of that fit well with the agency’s requirements.”