PCCP, LLC PROVIDES A $36.5 MILLION SENIOR LOAN TO REFINANCE A 241-UNIT MULTIFAMILY PROPERTY IN HOUSTON
Los Angeles, CA, May 9, 2019 – PCCP, LLC announced today it has provided a $36.5 million senior loan for the refinance of Bayou on the Bend, a multifamily asset in the Inner Loop/River Oaks submarket of Houston, TX. The 241-unit Class A property is adjacent to Buffalo Bayou Park and is 87 percent occupied. It was acquired by Arel Capital in mid-2017. The financing was arranged by Adam Allen and Ben Johnson of Newmark Knight Frank.
“When Arel Capital acquired the asset about two years ago, it assumed an existing CMBS loan which came due this month,” said Ron Bonneau, managing director with PCCP. “PCCP provided a bridge loan to pay off the existing debt, while providing additional time for Arel to continue executing its business plan of renovating unit interiors and increasing revenue at the property.”
Located on a 3.6-acre site at 5201 Memorial Drive, Bayou on the Bend is a seven-story property with a connected parking structure. Community amenities feature a rooftop pool and sky terrace with views of the Houston skyline and Buffalo Bayou; outdoor kitchen and grill area on the third floor with a second pool; kayak and bike rentals; state-of-the-art fitness center with Peloton bikes; business center; and game room, among others. The unit mix includes studios, one- two- and three-bedroom units with an average unit size of 1,161 square feet.
Bayou on the Bend is well-located in the Inner Loop/River Oaks submarket, an area within the I-610 freeway immediately west of downtown Houston. The asset’s Inner Loop location positions it at the center of some of Houston’s most desirable residential neighborhoods, employment nodes, and retail developments. The asset features frontage along both the Buffalo Bayou and Memorial Drive which leads directly into downtown Houston and is three-mile commute along Memorial Drive to the central business district which has more than 150,000 jobs. Additionally, it is a seven-mile commute to Galleria/Uptown business district and within an eight-mile drive of both Texas Medical Center and Greenway Plaza. Bayou residents are within walking or short driving distance of a variety of attractions including the restaurants and bars along Washington Avenue, upscale retail developments in River Oaks and the Heights, and two recently-restored recreational parks.
Arel Capital was formed in early 2013 by two former finance professionals, to invest in multifamily rental properties in the United States. Arel Capital has since closed 45 transactions, representing approximately $2 billion worth of real estate in eight cities (New York, Houston, Denver, Austin, Charlotte, Charleston, Nashville and Tampa). The firm is headquartered in New York City. For more information, call (212) 920-4901 or visit: www.arelcapital.com.