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$23M Fast Financing Seeds $29M Apartment Buy

HOUSTON-With a deadline of just two weeks, RAIT Investment Trust comes through with a $23.3-million loan to fund Internacional Realty Inc.'s acquisition of Bellmeade Apartments, a 336-unit, two-year-old complex in Northwest Houston.

By Jennifer D. Duell | Updated on May 31, 2005

HOUSTON-Internacional Realty Inc. has obtained $23.3 million from RAIT Investment Trust to acquire Bellmeade Apartments, a 336-unit, class A complex pushing toward stabilization. The San Antonio-based investment group, partnering with a 1031 exchange investor, purchased the two-year-old complex from the Worthing Cos. of Atlanta.

“Internacional Realty had to close on the financing in two weeks or its partner would lose the tax benefits,” says Frank Satterfield, founder and principal of locally based Harbor Capital Group. He tells GlobeSt.com that Internacional Realty had planned to acquire the Northwest Houston property without an equity partner and was halfway through the process of finding an acquisition lender when it brought in a partner with timing constraints. “We had to change the financing strategy midstream and find a lender that could close a deal in 10 business days,” he says.

Satterfield says Harbor Capital, a RAIT correspondent, facilitated a one-year, 80% loan-to-value financing for Internacional Realty. He adds Internacional Realty plans to refinance the RAIT loan in the next 60 to 90 days with permanent debt once the 75%-leased complex is stabilized.

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