Search
 

624 Units in Houston Leverage $11M Refinance

HOUSTON-A New York City owner closes out a seven-year loan with a new 10-year financing, using the Meadowridge and Villages of Westridge complexes as collateral. The borrower gets a lower interest rate and rehab capital.

By Jennifer Brenner Andrade | Updated on November 12, 2003

HOUSTON-A New York City owner of two multifamily properties in the Houston area have secured a 10-year refinancing for $11 million.

The Meadowridge and Villages of Westridge, with 312 units apiece and both positioned near Reliant Stadium, are the collateral for borrower Lamstar Associates, led by Alexander Scharf and Ron Gottesman. The refinancing, obtained through Lehman Brothers, represents a 75% loan to value and replaces a previous note held by the New York City lender.

The loan arranger, Terry Tomlinson in the Houston office of Live Oak Capital Ltd., tells GlobeSt.com that the owners began shopping for a replacement loan about six months before Lamstar’s seven-year note came due. Lehman was again selected because the lender was willing to lock in a 5.31% interest rate five months prior to funding, he says, adding the retired debt carried an interest rate in excess of 8%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.