News

Houston Economy at a Glance – May 2019

The May 2019 issue of the Houston Economy at a Glance courtesy of the Greater Houston Partnership has been released. Highlights of this month’s update include:

  • The metro Houston population grew by almost 92,000 residents in 2018, bringing the region’s population to nearly 7 million.
  • International migration to metro Houston reached a record high of 44,535 people in 2018, topping the previous record of 43,094 set in 2017.
  • Metro Houston ranked third in overall population growth, third in net natural increase (births vs. deaths), and fourth in international migration in 2018.
  • Almost 68,000 jobs were created in metro Houston in the twelve months ending March 2019, a 2.2% increase.
  • The Purchasing Managers Index (PMI) was 64.0 in March 2019, the highest reading in six years. Readings above 45.0 signal overall economic expansion in Houston over the next three to four months.

This document can be viewed here: Houston Economy at a Glance – May 2019

Please contact us if you have any questions about the information provided.

Q10 KDH’s Mayer Sells, Arranges Debt for Newly Constructed CVS in Cambridge, MA

Closed: $20.95M

Q10 KDH Vice President Melissa Mayer sold and arranged debt for a new CVS. The property is strategically located in the densely populated, walkable neighborhood of Cambridge, Massachusetts. The construction preserved and restored the exterior of the historically significant Lechmere National Bank Building (1917). The new building seamlessly blended the original façade of the former bank building into a contemporary, efficient, stand-alone retail building. A mortgage loan was secured on a 25-year, fixed-rate term with a Q10 KDH correspondent lender.  

Houston Economy at a Glance – April 2019

The April 2019 issue of the Houston Economy at a Glance courtesy of the Greater Houston Partnership has been released. Highlights of this month’s update include:

  • The Texas Workforce Commission reported that 72,600 jobs were created in metro Houston in the 12 months ending February 2019, a 2.4% increase.
  • Domestic oil production reached 12 million barrels per day (mb/d) in March 2019 (an increase of 1.6 mb/d over March 2018) according to the U.S. Energy Information Administration (EIA). The U.S. now leads Russia (11.6 mb/d) and Saudi Arabia (10.1 mb/d) as the world’s top oil producer.
  • The latest forecast from The Perryman Group states that growth in metro Houston will outpace Texas and the U.S. through 2023. The projected growth will add 600,000 residents, 340,000 jobs, and $100 billion to real gross product.
  • Building permits for the City of Houston were up 32.1% in February 2019 ($535.2 million) as compared to February 2018 ($405.1 million). Commercial permits increased 66.1% to $361.8 million.

This document can be viewed here: Houston Economy at a Glance – April 2019

Please contact us if you have any questions about the information provided.

Closed: Acquisition Loan for Medical Office in Georgia

Q10 KDH Vice President Matt Franke and Associate Michael Borden arranged debt for the acquisition of a single-tenant medical office near Atlanta, GA. The property featured over 8,000 SF of leasable space and was built in 2018. 

“KDH was pleased to provide acquisition financing for a New York-based family partnership which facilitated their purchase of a newly constructed Class A medical office building,” Matt said. “The borrower was seeking traditional life insurance company underwriting, which in this case included a 10-year, fixed-rate of approximately 4.60% and a 25-year amortization.  We selected Symetra, which is a correspondent lender for KDH, due to their competitive interest rate and low closing costs.”

Q10 KDH Closes $28MM Construction Loan for Multifamily Property

Q10 KDH Vice President Ryan Watson secured a $28,000,000 construction loan for Dhanani Private Equity Group. The loan was secured with a regional bank and has 3 years of interest only payments with decreasing levels of recourse to the Sponsor. Dhanani Private Equity Group is constructing a 288-unit, class-A, multifamily project on the west side of Houston, TX. The property’s name will be The Territory at Greenhouse and will have full amenities for new residents, including a resort-style pool, fitness center, business center, and dog park.

“The Sponsor is a well-known retail and hotel developer in Houston and was able to secure the land a few years ago,” Ryan said. “Given their development experience, they were able to assemble an outstanding team to design and construct the project. We feel that new community will be accretive to the area and offer a level of amenities that no other community in the area has.”

$12.4MM Cash-out Financing on Southwest Houston Multifamily

Q10 KDH Vice President Ryan Watson refinanced a 313-unit multifamily property in southwest Houston for a longstanding KDH client. Ryan was able to get 5 years of interest only payments on the 10-year, non-recourse loan. The $12.4MM loan also included cash-out financing above the borrower’s cost basis.

“The owner has been a client of mine for several years, which enabled me to see the numerous upgrades that he has made to the property,” Ryan said. “I was able to convey this knowledge to the lender and meet the financing needs of the client.”

Q10 KDH Closes Permanent Debt Loan for Industrial Park in Houston Suburb

Q10 KDH Vice President Larry Peters and Senior Associate Adam Unger arranged permanent debt for a 42,000 SF industrial park in Katy, TX. Larry and Adam worked on behalf of the borrow to secure a 10-year, fixed-rate loan. The 100% leased property was built in 2017.

“With the increasing costs of construction, developers are finding it difficult to pay off construction debt and pull equity out of a transaction,” Larry said. “We secured a loan that was able to pay off the construction lender at stabilization and put some of the borrower’s equity back in their pocket. The quality of construction, strength of the rent roll, and strong market fundamentals helped solidify the deal. Our repeat borrower saw the value of working with an experienced KDH debt team who negotiated a 10-year-term loan with limited recourse and no prepayment penalty.”

YE 2018 Texas Market Update

Our YE 2018 Texas Market Update has been released. Inside, you will find an overall market outlook, a breakdown of market highlights for Houston, Dallas-Fort Worth, San Antonio, and Austin, as well as graph data.

Feel free to contact us if you have any questions about the information provided.

Closed: Single-Tenant Retail Property in DFW


Q10 KDH Vice President Travis Fite arranged a $4 million loan for the acquisition of a 55,000-square foot, single-tenant retail property in Allen, TX. Travis worked on behalf of the borrower to obtain a ten-year, fixed-rate loan with correspondent life insurance company, StanCorp Mortgage Investors. 

“We were able to secure a ten-year, fixed-rate loan for the buyer of a single tenant gym property in Allen, Texas,” Travis said. “Our correspondent lender, StanCorp was able to get comfortable with the gym tenant based upon a large number of members at this location, not to mention a positive history with this repeat borrower.”

$2.35M Loan for Metro Atlanta Retail Acquisition Closed After Multiple Financing Offers

The six-tenant shopping center located in the northern suburbs of Atlanta, GA, was constructed in 2006.

Q10 KDH Vice President Matt Franke arranged $2.35M in debt for the acquisition of a Starbucks-anchored shopping center in metro Atlanta, GA. The Class A retail property featured over 8,300 SF of leasable space and was built in 2006. Matt secured a 5-year loan with a national bank lender.

“Through a referral from an existing client, we were engaged by our New Jersey-based borrower to provide acquisition financing for this Class A Starbucks-anchored retail center in suburban Atlanta,” Matt said. “As part of their estate planning, the borrower required non-recourse financing with prepayment flexibility. These requirements were met by our national bank lender who also provided a 30-year amortization and total lender closing costs of less than $10K, including the appraisal, Phase I and lender legal. We received multiple financing offers for this high quality property, with many interested lenders attracted to the recently renewed Starbucks lease and the strong neighborhood demographics.”