Warren Hitchcock, senior vice president/senior director of NorthMarq’s Houston office arranged the $32 million refinance of Gessner Apartments. The 500-unit class C, garden-style multifamily property is located in Southwest Houston, Texas.
The transaction was structured with a 7-year term with 2-years of interest only followed by a 25-year amortization schedule. NorthMarq arranged the large cash-out fixed-rate loan at a 3.75 percent interest rate for the borrower through its correspondent debt relationship.
“The owner completed a tremendous turnaround at this property and significantly increased the occupancy, cash flow, and value,” said Hitchcock. “NorthMarq was able to successfully provide the borrower with a full return of equity and cash out above their total cost basis. The sponsor is now able to reinvest these proceeds into another mismanaged and underappreciated asset in one of Houston’s lower income areas, making a real difference in the community and ultimately people’s lives.”