"American Realty wanted to take advantage of the current market," says Jude C. Hopkins, an assistant vice president with GMAC Commercial Mortgage Corp.'s loan origination office in Houston. He and Allan D. Dannatt arranged the financing through Thrivent Financial Life, the borrower's original lender on the 2301 Hayes Rd. property.
The Thrivent loan has a 10-year term with a 5.47% fixed-rate interest. "We saved him a bunch of money because the new loan decreases his rate by two percentage points," Hopkins tells GlobeSt.com, adding the financing represents a 70% loan-to-value.
"This deal was completely relationship-based," Hopkins says. "Thrivent wanted to keep the loan. It was a fast, smooth deal because all parties knew each other." About $2 million will be spent on upgrades and the balance used to retire the existing loan, he says. Improvements will include deferred maintenance items like roofs, fence and HVAC system.
The 98%-leased Waverly Apartments, sitting on 9.5 acres, was developed in 1979 and 1980. "This property is in a good location and it's very well leased," Hopkins says. "Any lender is going to want a 98%-leased property."
The complex has 64 studios, each 475 sf; 132 one-bedroom apartments, ranging from 690 sf to 730 sf; 96 two-bedroom units, with 900 sf to 1,040 sf; and 16 three-bedroom designs of 1,150 sf. Rents average 75 cents per sf.
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