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HOUSTON-A prominent locally based developer has obtained $10.7 million in permanent and construction financing for the 144-unit Savannah Club. The plan is to break ground this week on a 36-unit expansion of the San Marcos development.
The Leyendecker Group used $8.7 million of initial funding from New York City-based CIBC World Markets to retire a construction loan with Regions Bank for the first phase of the 250 S. Stagecoach Trail development, completed in April 2004. The remaining $2 million is being held in reserve for second-phase construction, which will be ready to occupy by year's end.
"We were able to handcraft a loan that is a hybrid between a construction loan and a permanent loan," says Jim Kirkpatrick of Live Oak Capital Ltd. in Houston. "We were able to kill two birds with one stone." He and Live Oak Capital's Hal Holliday arranged the 10-year package, which amortizes over 30 years and carries a 5.5% fixed-rate interest. Kirkpatrick says the loan launches with six months of interest-only payments.
"There were a lot of lenders that were interested in doing the deal, but they all tried to tie it together with a forward commitment and it just became too complicated," Kirkpatrick tells GlobeSt.com.
Kirkpatrick says the developer waited to see the leasing progress of the first phase before moving ahead on the expansion. "The first phase is 100% occupied and has waiting lists," he says.
According to Kirkpatrick, the 9.1-acre development offers amenities and a level of finish out rarely seen in San Marcos, about 165 miles east of Houston. The one-, two- and three-bedroom units rent for $660 to $1,250 per month.
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