Houston, TX

CBRE Arranges Acquisition Financing for 160-Unit Multifamily Property in Houston

July 5, 2022

Villa Nueva apartments

CBRE Capital Markets’ Houston Debt & Structured Finance team has arranged financing for the purchase and renovation of Villa Nueva Apartments, a 160-unit multifamily property in Houston’s Northline submarket. The financing was on behalf of Spry Capital: a privately owned, Houston-based real estate investment firm focused on the acquisition and management of value-add multifamily assets in strategic locations.

CBRE’s Michael Thompson and Brock Hudson delivered high leverage (76% LTC), non-recourse financing with competitive pricing and flexible prepay. Loan proceeds were used to cover 73% of the purchase price and 100% of the renovation costs. A New York-based debt fund provided the funds.

“Villa Nueva is a well-positioned asset with attractive upside potential,” Hudson said. “The property’s solid in-place cash flow, coupled with the sponsor’s value-add business strategy, helped us secure attractive financing terms, despite market volatility, rising interest rates, and recessionary headwinds.”

Built in 1960, Villa Nueva is a 160-unit garden-style apartment located along I-45 just north of the 610 Loop at 5600 North Freeway. Situated on 5.02 acres of land, the property consists of 1BR, 2BR, and 3BR units with an average size of 850 square feet.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.