Two New Texas Properties- One Will Serve Area Devastated By Harvey
By the end of 2019, HKP closed on 2 new properties in Texas- Laurel Vista and Magnolia Station! Adding these properties to our Texas portfolio brings us to 12 communities and 1,066 units in the Lone Star State! This gives us our second largest footprint, behind Indiana, of all the states we work in.
Magnolia Station Apartments is an affordable new construction development consisting of 5 residential buildings and a clubhouse to be located in Winnie, TX. The project was awarded a $6.25 million Community Development Block Grant to aid in rebuilding much-needed housing in the aftermath of Hurricane Harvey which impacted the area in 2017. In addition, Merchants Bank of Indiana is providing a $3.5 million revolving loan facility to finance construction draws.
The property’s 44 units will serve households at a range of area median incomes (AMIs) – 5 units will be affordable to households at 30% AMI; 27 units will serve High HOME-eligible households (approximately 60% AMI); and 12 units will be market-rate units with no income restrictions. The community will have a leasing office/clubhouse with a business center, equipped fitness center, community room, and playground.
We also closed Laurel Vista Apartments in Beaumont, Texas. This is a 9% project that will consist of 60 tax credit and 9 market rate units. The development will be new construction designed for seniors and consist of one 4-story building with an elevator. The building will contain 32 one bedroom and 37 two bedroom units. Planned amenities include a leasing office, a community/game room with a kitchen, an exercise room, a business/computer room, and a library. This will be HKP’s third new construction development in Beaumont, TX in the last 5 years.
The financing arrangement includes equity and a construction/bridge loan from one of our favorite partners – Regions Bank.
A lot of time and hard work goes into getting a deal across the finish line. Fortunately, we have dedicated team members and partners who believe in what they do. We are excited to bring these communities to the residents of Texas and further our mission of creating value through real estate!
Photo Credit: Logan Wheat