CMBS Still Craving Houston Multifamily
Capital markets competition is as strong as ever (if not stronger) in Houston, LMI Capital managing directors Jamie Mullin and Brandon Brown (pictured with his sons) tell us. They just closed three multifamily financing deals totaling $55M, and Jamie tells us he’s been getting good leverage and interest-only on permanent loans in Houston now for Class-B and –C apartments. The biggest recent deal was $29M to purchase a 700-unit multifamily property in west Houston. It took 30 days from loan application, Jamie tells us, and a CMBS lender provided over 78% of the purchase price with five years interest-only.
Jamie also closed acquisition financing for a 260-unit Class-C apartment community in southeast Houston; he tells us the team had multiple options and selecting the CMBS lender was competitive. Meanwhile, Brandon handled the $19M cash-out refinance of a 430-unit community in the Briar Forest submarket. It included an open, flexible prepayment structure for the entire five-year term.