The Reserves at 700 was built in 2017 with 180 residential units in three-story buildings.
BIG SPRING, TX—The Reserves at 700 was built in 2017 and is comprised of 180 residential units in three-story garden-style multifamily buildings in the Midland-Odessa MSA, 40 miles northeast of Midland. The property contains 177,990 square feet of net rentable area and offers one- and two-bedroom units with five different unit layouts.
Hunt Real Estate Capital recently provided a Fannie Mae conventional loan in the amount of $18.5 million to finance the acquisition of the multifamily property. The loan has a five-year term, amortizing for 30 years, with a 36-month yield maintenance period, followed by 21 months of 1% prepay and 90 days of open prepay. The borrowers are Robert Blau and Adam Jacobson.
“The borrowers are new Hunt Real Estate Capital clients, but they are experienced agency borrowers with more than 20 years of industry expertise, with four previous transactions with Fannie Mae and three with Freddie Mac,” notes Vic Clark, senior managing director at Hunt Real Estate Capital.
While Big Spring is a small market, there is a diverse employment base with a large VA Hospital, Big Spring Independent School District and Big Spring State Hospital providing housing demand, in addition to the numerous oil and gas companies in the area.
“The Reserves at 700 is located in an area where property fundamentals and economic conditions continue to improve,” Hunt's Xavier Salinas tells GlobeSt.com. “The Odessa-Midland metro area is expected to have a positive impact on the property's performance in the near term.”
Big Spring is situated at the Crossroads of West Texas, making it a natural transportation and distribution hub. Interstate Highway 20 is the major east-west artery and Texas Highway 87, the major north south artery. Big Spring is located on the Ports-to-Plains Corridor linking Mexico with Canada, a major transportation route for goods and services manufactured or grown in the Midwest and distributed worldwide.
Big Spring is the former home of Webb Air Force base and boasts an 8,800-foot runway capable of landing 737 class aircraft. It also has a new air terminal, and facilities suitable for shipping and distribution. Big Spring is serviced by Union Pacific Railroad on its primary east-west track with thousands of railcars passing through the city every day. Big Spring Rail System, a short line, will provide trans-load services to existing customers via the airpark and potential new businesses. These assets make Big Spring a target for transportation distribution operations and a focus for the EDC to develop logistic operations, GlobeSt.com learns.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
