HOUSTON—While Houston's class-A multifamily sector continues a prolonged struggle in terms of lease up and vacancy rates, class-B and -C properties remained stronger performers across a variety of metrics. This, combined with continued strength in single-family home sales, allows the residential market to see silver linings among any clouds, according to Q10 Kinghorn, Driver.
In an example of strong performance in that class-B category, a mega multifamily portfolio was recently funded. Berkadia arranged more than $130 million in financing for H7, a portfolio of seven class-B multifamily properties. Managing director Ed Kim of Berkadia's Irvine, CA office originated the refinancing.
The floating rate bridge loan, secured through a CMBS lender, featured a 75% loan-to-value ratio. Totaling more than 2,000 units, the portfolio had an average occupancy rate greater than 93% at closing.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
