“A look at history shows that the retail real estate industry is incredibly resilient. Today, with the growth of the food & beverage sector, it is producing jobs for workers ready to meet consumers’ demand for new shopping and entertainment options.”
“Manufacturing jobs have dwindled nationwide, but one Texas metro saves endangered jobs. Houston supplies equipment and hardware for Texas’ energy sector, keeping area manufacturing jobs healthier than in other locations.” -Real Estate Center at Texas A&M University
Full report: Texas A&M University
More details: Connect Media
Connect Media opened its Texas office in Houston, and decided to get a pulse on the market. Office and retail experts in this economic outlook video discuss everything you need to know about the city, from oil slump recovery to new trends.
Vice President of Q10 KDH, Larry Peters, worked with an Agency lender to arrange floating rate financing for a 144 unit multi-family property in College Station, TX. This is the second multi-family loan in College Station financed by Mr. Peters in the last two months.
The property has a mix of student and non-student residents and caters to a roommate situation, as the asset offers mostly large 2BR/2BA units. With an interest rate in the mid 3’s, and a 30 year amortization as well as an interest only component, the increased cash over the prior debt is significant. This type of debt also allows for an easy exit with a very low prepayment option.
“Leased on a per unit basis, the property is an alternative to the expensive by the bed option but offers some of the same amenities. Not the scale as some of the newer student properties, but you don’t pay for the luxury experience. Many of the student residents work and have a source of income and qualified on their own, without a parental guarantee.” – Larry Peters
The Q10 KDH team of Matt Franke, Ray Driver and Emily Zarcaro worked together to arrange $16,000,000 in permanent financing for a newly constructed Class A shopping center. The retail center, known as Cypress Creek Plaza, is located in Northwest Houston, Texas. The property is located less than two miles from the newly opened Grand Parkway which has spurred rapid development in the submarket.
Cypress Creek Plaza is shadow-anchored by H-E-B Grocery and offers 51,034 NRSF among three buildings and three ground leased pad sites including Chase Bank, Wendy’s and Zaxby’s. The permanent loan was provided by Thrivent Financial at a sub 4% fixed interest rate with a 10-year term and 30-year amortization.
Franke states, “KDH was fortunate to work with the Smithco Development & Mischer Investments team on the financing of this very high quality asset. We’ve tracked this property from its initial inception and then through the development and lease up process. Working with the borrower, we were able to time the rate lock and secure an attractive fixed rate in the high 3%’s which will benefit the owners for the next 10 years.
Although it’s a relatively new development, Cypress Creek Plaza has already established its position in the market as a desirable destination for retailers and their customers. The property leased up quickly, and the Smithco/Mischer leasing team did a great job of integrating a complementary mix of restaurants, service providers and traditional retailers.
The high quality collateral, committed ownership, superior location and strong demographics made this opportunity attractive to a variety of lenders. Ultimately we chose Thrivent Financial based upon their aggressive loan terms, strong reputation and core values that aligned with the borrower’s. All parties look forward to future opportunities to work together again.”
Q10 KDH Vice President Matt Franke arranged $5,000,000 in non-recourse financing for Pineway and Westway Business Centers, which are separate properties located about 3 miles apart in Northwest Houston. The combined properties offer 116,950 NRSF situated on 7.93 acres. Q10 KDH correspondent lender Advantus provided the financing with an interest rate in the low 4% range with a 25-year amortization and a 10 year maturity.
“This was our second acquisition loan with this borrower in 2017. Our borrower sought non-recourse financing for this two property portfolio, which was attractive to them because the assets were not fully stabilized. With 80% occupancy at closing, our lender was comforted by the reasonable price per foot, the submarket strength, and the borrower’s business plan for improving property performance. We were grateful that Advantus held their rate lock during a lengthy escrow caused by a couple of tenant departures during due diligence. In the end, we pushed it across the finish line through the collective efforts of our capable borrower and lender combination.”
Q10 KDH Vice President Larry Peters arranged $5,750,000 in financing for Cedar Ridge Apartments located in College Station, Texas. The property is located one mile from Texas A&M University and has numerous amenities including two pools, a basketball court, a community garden, BBQ pits, a clubhouse, and shuttle to Texas A&M. The fixed-rate financing was provided by a correspondent Q10 KDH life insurance company with an interest rate in the low 4% range with a 20-year term and a 20-year amortization.
“The Borrower was looking for an option instead of his typical agency lender. He had never borrowed money from a Life Company but selected one that provided a rate ½ point less than what an agency lender could provide. He locked the rate at application, taking out the interest rate risk, and didn’t have to escrow for taxes, insurance or CapX., nor did he deal with the forms and red tape when compared to Fannie or Freddie. Q10 KDH’s correspondent Life Company platform is just another arrow in our quiver that helps us meet the client’s needs and serves his best interest.” ~ Larry Peters