Gessner Apartments Refi with Cash-Out Fixed-Rate Loan
Gessner, a 500-unit class-C garden-style multifamily asset in Southwest Houston, was recently refinanced for $32 million. The transaction was structured with a seven-year term and two years of interest only followed by a 25-year amortization schedule.
Warren Hitchcock, senior vice president/senior director of NorthMarq’s Houston office, arranged the loan. NorthMarq arranged the cash-out fixed-rate loan at a 3.75 percent interest rate for the borrower through its correspondent debt relationship.
“The owner completed a tremendous turnaround at this property and significantly increased the occupancy, cash flow and value,” said Hitchcock. “NorthMarq was able to successfully provide the borrower with a full return of equity and cash out above their total cost basis. The sponsor is now able to reinvest these proceeds into another mismanaged and underappreciated asset in one of Houston’s lower income areas, making a real difference in the community and ultimately people’s lives.”
Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM.
In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.
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