MSA Consistently Supports Multifamily Demand

Fountains of Katy is a garden-style multifamily property.

KATY, TX—A Fannie Mae loan in the amount of $25.4 million has been procured to finance the acquisition of a multifamily facility, the Fountains of Katy . The borrower is Fountains at Katy LLC , a Delaware limited liability company backed by key principal, Joseph Lubeck , a repeat borrower. The transaction is structured with a floating rate 10-year term with lockout for one year, 1% fixed prepayment and 30-year amortization with four years interest only. Hunt Mortgage Group facilitated the loan. “Fountains at Katy is located in the Houston-Woodlands-Sugar Land MSA, a growing market that consistently supports the demand for multifamily housing,” said John Beam , managing director at Hunt Mortgage Group. “This is one of the first Fannie moderate rehabilitation loans we have done with a structured ARM that offers the borrower maximum loan dollars on a rehabilitated basis and the flexibility of a low fixed prepayment. The borrower was very pleased with the execution.” Fountains of Katy is a garden-style multifamily property that is comprised of 32 two-story apartment buildings and a leasing office with a total of 316 units and 476 parking spaces. The buildings were developed with 255,108 square feet of rentable space on an 11-acre parcel of land. Beam tells GlobeSt.com: “Fountains of Katy was developed in 1983 in the Katy/Far West market of Houston. It is located in one of the most acclaimed school districts in the state of Texas, with approximately 70,000 students. By the year 2019, projections show that over 343,000 people will reside in the Katy area. The sponsor will continue to benefit from the strong demographics and has put over $3 million into project renovation and upgrades. The structured ARM provided maximum loan dollars on a rehabilitated basis, low floating rate monthly payments and the flexibility of a low fixed prepayment.” The property offers 144 one-bedroom, one-bathroom units, 148 two-bedroom, two-bathroom apartments and 24 three-bedroom, two-and-a-half-bathroom units.  Property amenities include two pools, a hot tub, barbecue area, sportsplex/fitness center that includes indoor basketball, squash court and gym, and an outdoor sports court and playground.