Live Oak Capital Ltd. arranged the 10-year loan for Walter Teachworth through CIBC World Markets, which offered a fixed-rate interest of 5.2% and a 30-year amortization schedule. The Galveston portfolio consists of the Seasons, a 258-unit complex at 8100 Seawall Blvd.; the 120-unit Somerset Retirement Village at 2121 61st St.; Chateau Lafitte, an 80-unit asset at 711 Holiday Dr.; and Ebbtide, a 98-unit project at 100 Market St. All complexes are 100% occupied, with the exception of the Seasons, which is 85% occupied.

"I've been working on this deal for more than two years," say Greg Young, a loan officer with Live Oak Capital Ltd. He first worked on the portfolio to arrange an acquisition loan for an investor who wanted to buy it from Teachworth. After the sale fell through, Young tells GlobeSt.com that he decided to pursue a refinance for Teachworth. "I was trying to make lemonade out of lemons," Young says.

A lot of lenders were interested providing financing, Young says. "Galveston is considered to be a very steady market like San Antonio so lenders were more than happy to compete for the deal," he explains. The average occupancy for Galveston is north of 91%.