The hawthorn. Image courtesy of ACRES
ACRES Capital Corp. takes advantage of housing demand in Houston by providing a $ 89 million home loan for a community of 67 units.
ACRES provided the loan to Pelican Builders and Ranman USA, with an initial 36 month term, which will use the funding to build The Hawthorne. ACRES ‘Drew Miller initiated the deal while Mission Capital Debt’s Steven Buchwald arranged the loan.
Buchwald said in prepared remarks that the loan would be difficult to arrange during the COVID-19 pandemic, but that The Hawthorne was a great project backed by leading developers. Developers expect the groundbreaking to happen in the last week of August or the first week of September with an expected completion in September 2023, ACRES told Multi-Housing News.
The 17-story community will offer 67 units in two- and three-bedroom floor plans ranging from 1,517 to 3,525 square feet. The Hawthorne will also include a pool, fitness center, dog park and wash station, lounge and guest suites. The community comprises a total of 164,546 square meters of lettable space with an additional 19,712 square meters of outdoor space, 178 parking spaces and 67 storage units.
The Hawthorne is located at 5656 San Felipe St. in the Galleria submarket of Houston, 10 miles from downtown. The community is also located near the Interstate 610 loop that surrounds Houston.
HIGH HOUSING DEMAND IN HOUSTON
ACRES President and CEO Mark Fogel said in prepared remarks that Houston is experiencing one of the most sought-after housing markets the city has ever seen. In his prepared remarks, Fogel added that there was a need in the city for new living space and alternatives to the classic single-family house.
Fogel also said in prepared remarks that Texas, Houston in particular, has benefited from the rapid population growth in the US Sunbelt region in Houston. Fogel added in his prepared statement that ACRES does not expect this growth to slow in the sun belt as people tend to have a higher quality of life and more room to breathe.