PCCP, LLC PROVIDES $72 MILLION SENIOR LOAN FOR REFINANCING OF MILLENNIUM HIGH STREET, A MULTIFAMILY PROJECT IN INNER LOOP/RIVER OAKS SUBMARKET OF HOUSTON, TEXAS
Los Angeles, CA, June 27, 2018 – PCCP, LLC announced today that it closed a $72 million senior loan to a partnership of The Dinerstein Companies and Coventry Real Estate Advisors for the refinancing and stabilization of Millennium High Street. The property is a 340-unit, Class A multifamily project with approximately 26,000 square feet of ground floor retail located at 4410 Westheimer Road in the Inner Loop/River Oaks submarket of Houston, Texas. The financing was arranged by Cameron Cureton of HFF Houston.
Built by the partnership on a 6.3-acre site in 2013, Millennium High Street consists of four, four-story residential buildings and a seven-story parking garage, with all of the buildings interconnected via air-conditioned walkways. The retail is 100 percent leased to tenants that include Darden Restaurants’ Seasons 52 and Fidelity Investments. The residential component, a mix of luxury one-, two- and three-bedroom units, is currently 96 percent occupied. Community amenities including a fitness center, a yoga and Pilates studio, a resort-style pool and spa, a BBQ area, a dog park and washing station, and a rooftop lounge featuring a fireplace and views of downtown Houston and The Galleria.
“Millennium High Street is a high quality asset located in one of the strongest multifamily submarkets of Houston,” said Ron Bonneau, senior vice president with PCCP. “The strong, experienced ownership, superior real estate and strength of the location create durable, long-term value for the asset.”
The submarket benefits from its central, Inner Loop location in Houston and access to the many retail amenities, entertainment options and commercial developments in the surrounding areas. Directly next to the asset is the River Oaks District, a newly developed luxury outdoor shopping and entertainment center, and less than a mile west across the I-610 is The Galleria, Houston’s premier mixed-use development anchored by Macy’s, Nordstrom, Neiman Marcus, and Saks Fifth Avenue. In addition, the Highland Village shopping center is less than a half-mile east of the property and contains a mix of high-end retail tenants.
Despite the impact of Hurricane Harvey, the Houston economy easily outperformed the nation over the last year. In 2017 and early 2018, Houston experienced its best employment growth since 2014. The strong economic growth in Houston is projected to continue over the next few years, in line with its historical performance as one of the top growth markets in the nation. Apartment market fundamentals will benefit from the robust economic and job growth forecast for Houston over the next several years.
The Dinerstein Companies is a coast-to-coast full service real estate and development company. Coventry Real Estate Advisors is a real estate investment manager offering a broad array of services to institutional investors seeking value-added retail/mixed-use assets.