Grandbridge Closes $17.95 Million Houston Multifamily Deal

Published On: 03.07.11

Charlotte, N.C. — Grandbridge Real Estate Capital’s Houston Office recently originated and closed a $17,950,000 first mortgage loan secured by Broadstone Gramercy, a former 224-unit condominium property, which is being converted to Class ”A” multifamily rental property in Houston, Texas. The three-year, interest-only bridge loan was funded through BB&T Real Estate Funding.

The transaction was originated by Houston-based Senior Vice President John Fenoglio.  “Grandbridge had the patience to work through the property’s bankruptcy sale and the understanding of the market that was needed to make this deal a success.  With 50 percent of the units complete when Alliance Communities contacted us about the acquisition transaction, we knew the demand generators, primarily from the Texas Medical Center, and the area’s neighborhood dynamics (the second highest income ZIP code in the Houston CMSA), and were able to forecast a rapid lease up post completion,” explained Fenoglio.  

"This transaction exemplifies the strength of the Grandbridge/BB&T platform.  John Fenoglio brought us into the process very early to structure the optimal deal for the client. We then fine tuned the structure several times as the deal evolved throughout the bankruptcy process. What made this deal interesting was that we were all working on the deal for several months without knowing for sure if our client would even end up getting the property; but we did know that if they did get the nod it would have to be a fast closing. The reward for everyone's patience was a very high quality asset in an excellent market with a very strong sponsor," detailed BB&T Real Estate Funding Senior Vice President Kirk Booher.

Located on 2.9 acres in Houston’s Texas Medical Center District neighborhood 4.5 miles southwest of the city’s Central Business District, the property is comprised of two, five-story buildings, each featuring 112 units, with a blend of one-, two- and three-bedroom units.  Only minutes from Houston’s Central Business District, Broadstone Gramercy Park Condos offers residents close proximity to some of Houston’s most affluent neighborhoods, major employers, fine dining, shopping and entertainment as well as access to quality schools, including Rice University.   The property boasts spacious floor plans with an average unit size of 1,127 square feet,  condo grade unit interiors and fixtures, including stainless appliances, granite countertops and expansive closets, a fitness center and a large two-story clubroom.  

Charlotte, N.C.-based Grandbridge, a subsidiary of BB&T, has a broad investor base that includes insurance companies, CMBS investors, pension fund advisors, commercial banks and capital markets investors, as well as a proprietary lending platform. The company is a Fannie Mae DUS? (Delegated Underwriting and Servicing) lender, a Freddie Mac program Plus? Seller/Servicer and Targeted Affordable Housing lender, and an FHA Multifamily Accelerated Processor (MAP) and LEAN healthcare approved lender.   Grandbridge arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management, as well as real estate brokerage services. Grandbridge has a current servicing portfolio of $24 billion and represents approximately 100 capital providers. More information about the company is available at www.gbrecap.com.

As of December 31, 2010, BB&T is one of the largest financial services holding companies in the U.S. with $157.1 billion in assets and market capitalization of $18.3 billion. Based in Winston-Salem, N.C., the company operates approximately 1,800 financial centers in 12 states and Washington, D.C.  More information about BB&T and its full line of products and services is available at www.BBT.com.