Dealmaker: Eastern Union Arranges $26M Bridge Loan for Houston Multifamily

Eastern Union, New York, secured a $26 million bridge loan to acquire and redevelop Park Texas Apartments, a 587-unit Houston multifamily property.

The loan covered 75 percent of the purchase price and will fully fund a redevelopment capital plan.

Eastern Union Capital Market Specialist Michael Wyne and Senior Equity Consultant Boruch Mandel arranged the financing for a joint venture between the Auerbach Opportunity Fund II LP, New York, and Blue Magma Residential, Tampa, Fla.

Located at 11911 Martin Luther King Jr. Boulevard, Park Texas Apartments’ two-story, garden-style apartment buildings encompass 477,000 square feet of rentable space. The development is presently 50 percent occupied due several factors including hurricane damage. The new owners plan to rehabilitate the asset, including repairing the damaged units, renovating the clubhouse, roof and mechanical repairs and landscaping and common area improvements.

“We believe that investing in heavy value-add multifamily can be very successful in growing submarkets in established cities like Houston, and are looking forward to contributing to the velocity in the Southeast [Houston] submarket,” said Auerbach Family of Private Equity Funds Founder and CEO Peter Auerbach.

Auerbach noted his firm has closed more than $70 million in transactions with Eastern Union over the past two years.