Malone Mortgage Co. of Dallas provided the HUD-insured financing for the Woodcreek Apartments and Cornerstone Apartments. The 196-unit Woodcreek at 1235 Josey St. leveraged a loan of more than $4.1 million. The complex's average unit size is 708 sf.

The 84-unit Cornerstone at 2209 Ave. H was the collateral for a fast-track loan. The Cornerstone's average unit size is 955 sf. Hall acquired the complexes in 1989, just six years after they were built.

Bruce Minchey of Dallas-based Malone Mortgage Co.'s Houston office arranged the financing through HUD's 223 Multifamily Accelerated Processing Program. He tells GlobeSt.com that the fully assumable loans each have an 80% LTV ratio and run for 33 years.

According to Minchey, the apartments rent for 70 cents per to 77 cents per sf, which is higher than the citywide averages. Huntsville rents are determined by proximity to Sam Houston State University, the city's major influence, as well as the norm of property age.Complexes close in to the campus are bringing an average of 55 cents per sf while those farther away are bringing about 65 cents per sf.

Huntsville's 10 multifamily complexes fall prey to dangerously low occupancy rates in the summer, often dipping to a range of 50% to 65%. In comparison, the citywide occupancy hovers in the high 90% during the school year. To offset to the feast-or-famine effect, Minchey says many students pay about $200 per month to building owners to hold units through the summer.