$25.4M Permanent Loan Awarded to 301-Unit Mark

HOUSTON-A half-sold, 30-story condo project in the Galleria leverages a $25.4-million permanent loan for its Dallas-based developer, the Genesis Real Estate Group.

Financing a project midway through the sales process creates some complications, Paul Carlson, Chicago-based Corus Bank’s vice president, tells GlobeSt.com. Those complications include ensuring the project was completed and built according to plans. Also, the lender wanted assurance that all contractors and firms had been paid in full. Equally important was establishing that the sales per sf warranted the loan amount for the 301-unit Mark at 3505 Sage Rd.

Corus provided the financing for the one-year-old project. Carlson won’t talk about the terms, as is often the case. But, he did say, that the project’s strong sales velocity and good location helped to quickly close the loan. Corus, he adds, had to be flexible in completing the deal because the collateral pool and loan amount were constantly changing as with the ongoing sale of units–right up until the day the loan closed.

Unit prices generally are ranging from $200,000 to $390,000 for one- and two-bedroom designs, according to Carlson. There also have been several penthouse units sell for considerably more. Genesis principal Gordon Ip used Gromatzky & DuPree of Dallas to design the high-rise.

The Galleria submarket contains 21 class A multifamily properties, totaling 4,764 units, according to CB Richard Ellis Inc.’s Houston office. Key to the Corus decision, no doubt, is the submarket’s occupancy of 93.4% for top-of-the-line product.