NEW YORK, NY - Lightstone Capital, Lightstone’s real estate debt platform, announced today that it has provided a $20.1 million mortgage to Performance Properties for the acquisition of Normandy Woods, a 268-unit, garden-style apartment complex in Houston, TX.
The property, located at 695 Normandy Street, sits along the Interstate 10 corridor in East Houston, approximately four miles north of the Port of Houston. The 40-year-old property has been at least 90 percent occupied over the last decade.
Lightstone Capital provides sponsors with flexible, creative, and immediate financing solutions. Loans range in size from $5 million up to $100 million and are secured by real estate assets located in gateway markets.
Performance Properties, an experienced owner/operator based in Dallas, is led by principals Todd White and David McQuaid. Founded in 1973, Performance Properties has a strict focus on multifamily acquisitions in the Houston and Dallas MSA’s.
“We believe that Lightstone offered the best financial solution with the most flexibility to our value-add strategy on Normandy Woods," said McQuaid.
The deal was brought to Lightstone Capital by Cutt Ableson, a Senior Managing Director of Berkadia. It was handled in Lightstone Capital’s Dallas office, which is led by Lance Wright, Managing Director, Head of Originations, Central Region. Opened in March, the Dallas office covers the Southwest, Southeast, and Midwest regions of the country.
“Lightstone Capital was pleased to provide financing to Performance Properties for this value-add apartment acquisition,” said Eugene Rozovsky, Senior Managing Director of Lightstone Capital. “We view our borrowers as partners and feel that our flexibility and creativity in structuring this loan will allow us to help them execute their business plan at Normandy Woods.”
Since it launched in December 2018, Lightstone Capital has grown rapidly, developing a significant portfolio throughout the East Coast. In addition to the Dallas office, Lightstone Capital opened a Los Angeles office in February.
The platform has positioned itself as a creative and reliable capital resource with a proven track record and is now focused on the next growth phase with plans to double the portfolio in 2021. Lightstone Capital focuses primarily on senior bridge loans, mezzanine loans, and preferred equity investments throughout the top 50 MSA’s in the United States.
The Houston transaction follows other deals closed recently by Lightstone Capital, such as:
- $18 million senior loan to refinance a substantially completed multifamily property in Harrison, NY (September 2021)
- $25 million mezzanine loan for the acquisition of an industrial property in San Bernardino County, CA (August 2021)
- $9 million acquisition loan for an industrial portfolio in Queens, NY (July 2021)
- $12 million senior loan to refinance recently built multifamily property in San Diego, CA (July 2021)
- $16.2 million senior loan to refinance a multifamily portfolio in Brooklyn, NY (June 2021)
- $56.5 million senior loan to refinance a residential condo development in New York, NY (May 2021)
Lightstone is one of the most diversified privately held real estate companies in the United States. Active in 24 states across the country, Lightstone develops, manages, and invests in all sectors of the real estate market, including residential, hospitality, commercial, and retail. With 132 existing properties nationwide, Lightstone’s over $6.5 billion portfolio currently includes over 4 million square feet of industrial, retail, and commercial properties, over 15,000 residential units, and 4,300 hotel keys. Headquartered in New York City, Lightstone continues to grow its development portfolio with over $3.5 billion currently under development in the residential and hospitality sectors spread across New York City, Los Angeles, and Miami.