HOUSTON – May 16, 2017 – Berkadia today announced that it has arranged more than $130 million in financing for H7, a portfolio of seven, Class B multifamily properties located in Houston. Managing Director Ed Kim of Berkadia’s Irvine office originated the refinancing, which closed on May 1. The floating rate bridge loan, secured through a CMBS lender, featured a 75 percent loan-to-value ratio. Totaling more than 2,000 units, the portfolio had an average occupancy rate greater than 93 percent at closing.
“The solid rent growth and stable occupancy in the Houston Class B multifamily space, coupled with a decline in interest rates, has fueled an increase in apartment refinances,” Kim said. “The lender was able to meet the borrower’s required timeline, which was aggressive, and provide a favorable structure accretive for the sponsor’s investment thesis.”
The properties offer one-, two- and three-bedroom units with a variety of amenities, including fireplaces, walk-in closets, dishwashers, ceiling fans, hardwood floors, built-in bookshelves, gated access, clubhouses, fitness centers and swimming pools.