Alexan Apartment Portfolio - A TIC/1031 sponsor contracted to acquire four recently constructed, Class A apartment complexes in four separate submarkets in Houston, Texas. The properties were all still in the process of their initial lease-up. At the date of sale, the properties were approximately 60% occupied. Harbor Capital Group arranged senior and mezzanine financing to complete the transaction.
A major life insurance company provided a 9-month forward commitment for a $59,000,000 fixed rate loan secured by three of the four properties. The permanent loan funded when the properties achieved stabilized occupancy The same life insurance company provided a 9-month interim loan for $32,000,000 that funded at the closing of the sale. Harbor Capital Group arranged a 10% mezzanine loan on all three of these properties to bridge the gap between the life company's interim and permanent loan amounts.
Harbor Capital Group arranged financing on the fourth property in the portfolio through a major commercial bank. The bank provided both a $26,000,000 senior loan and a $15,000,000 mezzanine loan. Both loans will be refinanced with permanent debt when occupancy at the property reaches a stabilized level.
Houston, Texas |
$100,000,000 |
