Sundance Bay Snags $95.7M Financing on Two Texas Rental Communities

Sundance Bay obtained financing totalling $95.7 million for a 626-unit two-property Texas portfolio. Cushman & Wakefield’s Texas Equity, Debt & Structured Finance (EDSF) arranged the financing, which consists of $76.2 million in senior debt provided by Benefit Street Partners and a $19.5 million mezzanine loan through CCL Capital.

The portfolio includes Grove East, a 324-unit Class A garden-style community built in 2021 and located at 9300 N. Sam Houston Pkwy E. in Humble, Texas, and Rowlett Station (shown), a 302-unit Class A mid-rise community also built in 2021 and located at 3601 Melcer Drive in Rowlett, Texas. Both properties were subject to Housing Finance Corporation (HFC) income restrictions.

Grove East was 93% occupied at closing. Rowlett Station was 92% occupied at closing.

Chase Johnson and Caleb Riebe led the EDSF team on the transaction. The team received support from Cushman & Wakefield’s Jennifer Campbell, Josh Hoffman, Grant Raymond and Asher Hall, along with Richard Kourbage of Greystone.