ValueXpress Obtains $5.7-Million CMBS Conduit Loan for a 240-Unit Apartment Complex in Houston, TX

ValueXpress obtained a $5.7-million first-mortgage loan that was utilized to refinance Sago Palms Apartments, a 240-unit apartment community located in Houston, Texas. The complex was built in 1980 and was over 90% occupied at loan closing. The property is located in north Houston, in proximity to I-45 and 10 miles from George Bush Intercontinental Airport. Furthermore, the property is within close proximity to over 2.5 million square feet of new Class “A” office developments and 6.5 million square feet of new Class “A” industrial developments.

VE Sago Palms Apts

The sponsor purchased the property in 2013 and improved revenue through the continuation of an interior and exterior upgrade program commenced by the prior owner. The property features a variety of desirable one- and two-bedroom floor plans with unit sizes ranging from 552 square feet to 1,056 square feet.

“This turned out to be a very rewarding transaction,” commented Gary Unkel, Senior Loan Originator at ValueXpress for this transaction. “Loan spreads were moving up, so the lender shortened the closing time frame and held any spread adjustments to a minimum, resulting in an interest rate at closing that was not significantly different than the level in the Term Sheet. This was our first transaction with this lending partner, and based on the positive experience, we expect to do much more business with them.”

This entry was posted in CMBS, CMBS Conduit Loans, Commercial Lending, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , . Bookmark the permalink.

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