11 November 2017

Midtowns First High-Rise Secures Financing

Caydon, an Australian developer, closed on financing for its first U.S. development in Houston’s Midtown. At 27 stories, the project will be Midtown’s first high-rise, featuring over 342K SF of residential space across 357 apartment units.

Financing for the project comes at a tumultuous time for Houston’s multifamily market. Following months of slow leasing, the market was boosted by residents displaced by Hurricane Harvey, but many wonder how long the effects will last. Financing new developments has been the sector’s biggest challenge.

The HFF capital markets team representing the borrower included Senior Managing Director Matthew Kafka and analyst Dustin Selzer. Caydon worked with HFF to secure debt and equity financing for the tower through Bank of the Ozarks and Invesco Real Estate.

“Caydon is poised to deliver the first high-rise property in Midtown, one of the most vibrant and rapidly growing submarkets of Houston, at a time when limited supply is being added,” Kafka said.

(Originally published in Bisnow on 07 November, 2017 by Kyle Hagerty)