HOUSTON, TX – Berkadia announces it has arranged $1.75 million in preferred equity for the construction financing of The Edge at Langham Creek, a 115-unit multifamily property in Houston. The investment was the final piece of the $18 million capitalization for the project. Associate Director H. Mark Crosswell, CFA and Analyst Eric Kline of Berkadia’s Houston office arranged the preferred equity financing on behalf of HS Development.
MidHudson was the equity provider.
“We had originally sought a traditional equity partner to finance the cumbersome reserves for HUD financed housing developments, but through the Berkadia network, we were able to identify a new provider, MidHudson Capital, that had a product specifically for this type of funding requirement,” said Crosswell. “Their knowledge of HUD’s 221(d)(4) senior financing program made them easy to work with and allowed us to meet a tight deadline.”
Berkadia’s equity platform in Houston has arranged joint venture and preferred equity on a variety of transactions for numerous clients in both heavy value-add situations and ground up construction. Berkadia’s Houston office has arranged equity transactions as low as this unique placement as well as in excess of $20 million.
“The Edge at Langham Creek is well-positioned to benefit from pent-up demand in this developed area,” added Crosswell. “Most of the multifamily development in the Bear Creek/Katy submarket is focused in the Energy Corridor along Interstate 10. New supply has been limited further north in the developed area surrounding the subject site.”
Located at the southwest corner of Yorktown Crossing Parkway and Homma Drive, the property is situated one block from Highway 6, providing easy access from the Bear Creek area to the rest of the metropolitan area. Interstate 10 and the Energy Corridor are conveniently located 10 minutes to the south, and the Texas Medical Center West Campus, employing almost 4,000 medical professionals, sits 20 minutes away along Interstate 10.
About Berkadia: Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com