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SAN MARCOS, TX-Sanctuary Lofts has received $23 million in fixed-rate bridge financing from Live Oak Capital Ltd. of Houston and New York City-based CharterMac Mortgage Capital. The 202-unit, 533-bed student Downtown housing property is owned by several name developers and investors in Central Texas.
The five-year loan carries an interest rate of 6.08% and provides the ownership partners with future flexibility on the terms, says Jim Kirkpatrick of Live Oak Capital who closed the transaction with Pam Saylor of CharterMac Mortgage. The loan replaces construction financing previously provided by PNC Real Estate Finance of Pittsburgh and arranged by Live Oak Capital.
For the ownership entity, the Sanctuary Lofts LP, the new financing comes at an opportune time, Kirkpatrick points out. The 27,000-student body at the Texas State University campus in San Marcos is estimated to grow by 18% through 2010 "and there are no university plans for new construction of dormitories or residential units for the next 10 years," the broker says.
Sanctuary Lofts consists of two new buildings and a multi-story, 495-space parking garage. For San Marcos residents, the older portion of the landmark property is being preserved and placed in active use. Sanctuary Lofts was constructed on the former site of the First Baptist Church of San Marcos. Erected in the 1920s, the original church sanctuary is being used for the marketing, office and recreational facilities of Sanctuary Lofts, as well as for some living units. The property is at 350 North St., at the northeast corner of North and Hutchinson streets, one block south of the expanding university campus.
Sanctuary Lofts GP LLC is the general partner of the Sanctuary Lofts LP. Principals at Sanctuary Lofts LP include Bill Lee and Bill Skeen of Tekoa Partners Ltd., Terry Mitchell of Momark Development LLC and Terry Mitchell, an Austin developer and land entitlement specialist. Other limited partners and equity contributors include Pete Lamy and Bill Burrow of Sage Land Co., Joe Lamy of Capital City Partners Inc. and Jay Lamy with Staubach Co. The general contractor was Tellepsen Builders LP.
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