HFF Happy to Help in Houston
- Jul 28, 2015
By Keith Loria, Contributing Editor
Venterra Realty has received a seven-year, 3.22 percent, fixed-rate loan with a life company correspondent lender to acquire Preserve at Colony Lakes, a 420-unit, Class A multi-housing community in Stafford, Texas.
Holliday Fenoglio Fowler, L.P. arranged the fixed-rate financing on behalf of Venterra.
Completed in 2004, Preserve at Colony Lakes features one-, two- and three-bedroom floor plans. Community amenities include two swimming pools with hot tubs and sundecks, a state-of-the-art fitness center, barbecue/picnic area, clubhouse, recreation room with billiards, business center and garage/covered parking.
The property is located at 1000 Farrah Lane near the convergence of U.S. Highway 59 and State Highway 90 in Houston’s Stafford/Sugar Land submarket. It is situated approximately 20 miles southwest of downtown Houston.
According to CBRE’s latest Texas Multi-Family MarketView, Houston’s occupancy rate has registered greater than 90 percent for the third year in a row and remains strong for the first half of 2015.
The report notes that the recent decrease in oil prices is slowing down proposed developments but the upside to the decrease in multi-family construction will be an increase in traffic and absorption as the properties lease up.
Additionally, Houston’s rental rate has continued to surpass expectations, reaching an all-time high of $1.07 per square foot and the report forecasts the increase in rents to continue in the months ahead.
At the time of the acquisition, the property was 93 percent leased.
With the deal, Venterra now manages a portfolio of approximately 17,000 multi-family units totaling more than $1.45 billion in value that generates gross annual income in excess of $180 million.
The HFF debt placement team representing the borrower was led by director Cortney Cole.