Construction Loan Funds The Hawthorne Condos

An $89 million loan recently funded the construction of The Hawthorne, a 17-story 67-unit condominium building located at 5656 San Felipe St. in Houston. The loan originated by ACRES Capital Corp. was provided to sponsors Pelican Builders, a Houston-based residential development company, and Ranman USA, a residential investment firm. The loan carries an initial term of 36 months.

“As Houston experiences one of the hottest housing markets its ever seen, The Hawthorne’s high-end condominiums will meet the demand for new living optionality and provide an alternative to traditional single-family homes,” said Mark Fogel, ACRES chief executive officer and president. “Texas and Houston in particular have been direct beneficiaries of strong population growth in the country’s Sunbelt region, which we don’t see slowing down as people continue to seek a higher quality of life and more breathing room.”

The Hawthorne will feature 67 units totaling 164,546 square feet, 19,712 square feet of outdoor space along with 178 parking spaces and 67 storage units.

Steven Buchwald of Mission Capital Debt and Equity, part of Marcus and Millichap Capital Corp., arranged the loan. The deal was originated by Drew Miller of ACRES’ New York office.