HOUSTON (April 4, 2017) – Warren Hitchcock, senior vice president/senior director of NorthMarq Capital’s Houston regional office, arranged acquisition financing of $7.34 million for Regal Pointe and an adjacent property totaling 152-units of class “B” multifamily located at 6111 Willowbend in Houston, Texas. The buildings had both been partially renovated, with good existing cash-flow and significant upside in rents remaining through improvements to the property interiors. The transaction was structured with a 5-year term with 3-years of interest only followed by a 25-year amortization schedule. NorthMarq arranged financing for the borrower through its correspondent relationship with a life insurance company. According to Hitchcock, the buyer was able to source the 12 unit property adjacent to the Regal Pointe property off-market. These larger unit sizes and rents added a tremendous amount of value to the bottom line without considerable expense.
“We were able to attract a number of lenders’ interest in the acquisition/bridge financing for the purchase and renovation of the two properties located just west of Meyerland,” said Hitchcock. “Ultimately, NorthMarq was able to originate a bridge loan with one of our correspondent life company lenders which has a strong national relationship with NorthMarq at a 75% Loan-to-Cost, low fixed rate of 4.75%, with future fundings for renovations, flexible prepay, on a non-recourse basis. The fact that a life company was comfortable financing this acquisition reposition is a testament to the sponsor and his business plans, a true win-win.”