Fowler Partners Acquisition obtained $13.4 million in acquisition financing from CIBC World Markets to fund the deal. The investor now owns 13,000 apartment units in the nation.
The class A complex is located along South Shore Harbor, which anchors an affluent area that boasts one of the more healthy submarkets in the Houston metro area, says Brant Smith of Holliday Fenoglio Fowler LP who arranged the financing on behalf of FowlerPartners. He tells GlobeSt.com that the loan package offered an interest rate 100 basis points over the US Treasury with two-year, interest-only payment. The 10-year loan has a 30-year amortization schedule, he says.
"CIBC won the deal with the aggressive loan structure and terms," Smith says. "This loan was coveted by a lot of (lenders)."
The gated South Shore Lakes, built in 1999, is comprised of 36 two-story buildings containing one- and two-bedroom units averaging 761 sf. At closing, the class A community was 92% occupied with average rental rates of roughly $1 per sf.
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