Q10 KDH Vice President, Larry Peters arranged Fannie Mae DUS financing for a multifamily property located in Houston, Texas.
The financing provided our client two years of interest only and a floating rate with flexible prepayment. The asset received a seven year term and a low interest rate in the mid 3% range.
“The asset was located outside the Houston MSA and many lenders were more conservative due to the location. Our job is to educate the lender and show them the value of looking at the opportunity from a perspective that others don’t. We were able to accomplish the borrower’s wishes by delivering a higher LTV than what the majority of the market was comfortable in quoting but maintain the aggressive pricing that is available for multifamily assets in the market today.” – Larry Peters
We are pleased to provide you with the Q10 KDH 2017 year end Texas Market Update. Our research covers the four major Texas metro areas including Houston, Austin, Dallas/Fort Worth, and San Antonio.
In this report, you will find an overview of the Texas market comparing year end 2016 & 2017 along with the analytical research to summarize the information.
Year End 2017 Texas Market Overview
Ray Driver, Matt Franke & Adam Unger of Q10 KDH arranged financing for Boardwalk at Towne Lake. Boardwalk is a class A mixed use property located in the northwest region of Houston, TX.
Long term fixed rate financing was provided by Q10 KDH correspondent lender, Thrivent Financial. The asset spans over 124,800 square feet for retail, restaurant, and office use.
“KDH has a long relationship with Caldwell Companies, and we’ve witnessed their Towne Lake master planned development blossom since the project’s initial inception. The financing assignment was very specific, and we surveyed a broad spectrum of prospective lenders including banks, private lenders, debt funds and life insurance companies. Working with the borrower, we filtered numerous competitive loan proposals and ultimately selected our correspondent lender, Thrivent Financial, based upon their combination of rate, loan term, and prepayment flexibility. Caldwell secured an early rate lock when the application was signed, and together we processed the loan as a team. Our borrower benefits from a long term fixed rate loan and Thrivent is comfortably secured by the regions’ premier mixed use development.” – Matt Franke
The Q10 KDH team will be attending the Mortgage Bankers Association’s (MBA) CREF18 convention Feb.10-13 in San Diego. We will be meeting with dozens of capital providers who continue to have a strong interest in the Texas markets.
Based on reports from top economic forecasters, interest rates are on the rise as we have already seen a considerable increase in treasury rates in the last 60 days. A recent study by JP Morgan Chase estimated that the Fed will increase rates four times in 2018. Q10 KDH clients are locking rates on longer fixed rate products for immediate funding and forward commitments up to 12 months. Please contact any of our production officers to review current or future investments.
Cash-out refinancing for a self-storage property in north Houston was provided by Q10 KDH Vice President, Larry Peters. The asset contains 155 units located on just over an acre of land.
Larry Peters arranged the financing for his repeat client through a local Texas bank. The loan provided cash-out refinancing with a five year term and a low interest rate in the mid 3% range.
“The repeat borrower for this transaction has a relationship with KDH spanning over 20 years. We were able to establish a new lender relationship for the borrower that provided a more advantageous term and rate than what they could have secured on their own. At the end of the day it opened new doors between the parties and our borrower was able to receive a highly competitive deal by being open to the opportunity.” – Larry Peters
Q10 KDH Vice Presidents Matt Franke and Emily Zarcaro arranged $6.4 million in financing for Texas Wholesale in Northwest Dallas, TX.
Lincoln Financial provided an acquisition loan with a 12 year fixed rate below 4% and 25 year amortization for the single tenant, net leased distribution warehouse which spans 127,000 square feet.
“On behalf of our repeat client, MacDougall & Associates, we were able to secure an attractive 12 year fixed interest rate for this sale-leaseback transaction. MacDougall had been actively targeting attractive investment opportunities in the Dallas market for several quarters, and the borrower moved quickly when this transaction became available. Lincoln Financial was attracted to the loan due to the asset’s excellent location at the intersection of two Interstate highways, the strong tenancy, and MacDougall’s expertise with this asset type. Working together, we were able to rate lock early at an attractive yield to the investors and close in less than 60 days.” – Matt Franke
The next Q10 KDH happy hour is on Nov. 2nd hosted by Emily Zarcaro, CCIM, MBA. Come enjoy a beer with fellow young commercial real estate professionals and get a chance to win Texans tickets! Thank you CCIM for your support and sponsorship.
This event is free of charge and no registration required. We hope to see you there!
Q10 KDH Vice President Travis Fite arranged $3,500,000 in financing for Sugar Land Office located in Sugar Land, Texas. An affiliated correspondent life insurance company provided cash out refinancing with a ten year fixed rate in the low 4’s and 25 year amortization for the “B” class office building.
“Working with a repeat borrower, we were able to deliver a life insurance company commitment just a few days beyond the signed application. The lender loved the recent property renovations and the subsequent leasing activity that occurred. Even through Hurricane Harvey, a cooperative lender and borrower made for a quick and easy closing.” – Travis Fite
Q10 KDH Vice President, Ryan Watson provided $10,000,000 in financing for two separate multifamily properties in Atlanta, GA. The small balance Freddie Mac loans carried and average interest rate of 4.30%. Both notes had a 30 year amortization and 1-2 years of interest only.
“The borrower was a repeat client of Q10 KDH, I was able to pull equity from the properties while also lowering their interest rate with the new notes.” – Ryan Watson