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Florida Developer Breaks Into Texas With $25M Project

PEARLAND, TX-Florida Capital Land Corp. gets $19 million of construction financing to begin work on the 292-unit Cobblestone Park, planned for 59 acres in a fast-growing suburb south of Houston. Delivery is slated for second quarter 2006.

By Jennifer D. Duell | Updated on April 20, 2005

PEARLAND, TX-An Orlando-based developer is ready to move forward with a plan to develop a class A apartment complex with a $25-million price tag. The 292-unit Cobblestone Park has gotten a lender’s green light for $19 million of construction financing.

“We definitely had to shop this deal around to find a lender,” says Adam Horowitz, an associate managing director with Manhattan-based AFC Realty Capital. “This was a large enough deal that it warranted a large institutional partner.” Cleveland-based KeyBank cleared a three-year loan at a floating rate of Libor plus 175 basis points for Florida Capital Land Corp. to build out 59 acres at the intersection of US Highway 288 and County Road 59.

Horowitz tells GlobeSt.com that the deal was challenging because the project was Florida Capital’s foray into Texas. Houston’s lack of zoning always presents a problem for most lenders, he adds. “Fortunately, KeyBank had an innate understanding of the Houston market,” says Horowitz, who partnered with Michael Sonnabend, AFC Realty principal, to arrange the financing.

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