Lone Star Funds closes $110M floating-rate refi on Stafford rentals

Lone Star Funds closed a $110 million floating-rate, interest-only refinancing on two apartment communities in Stafford, Texas, Connect CRE reported on Oct. 14. The properties, 1879 at the Grid and Arc at the Grid, total 731 Class A units. TPG Real Estate Credit is the lender, according to Connect CRE; Walker & Dunlop Capital Markets Institutional Advisory arranged the financing.

Both properties sit inside a 192-acre mixed-use development along the U.S. 90A corridor, with direct access to Interstate 69. The buildings were constructed in 2019 and 2020, and the 731 units run from studios through three-bedrooms. Amenities include pools, fitness and wellness centers, resident lounges, coworking space, pet parks, package lockers, detached garages and carports, and barbecue areas.

$110 million across 731 units equals roughly $150,000 of loan per unit. Because the loan is interest-only, no principal payments are scheduled; the floating rate puts interest-rate risk on the sponsor. The report did not disclose the loan's spread, index or term.

This publication reported on Oct. 2 that Front Range Partners closed a $75 million Freddie Mac refinancing on the 220-unit EVO St. Petersburg, also arranged by Walker & Dunlop. Walker & Dunlop's institutional group arranged a $170.5 million Chase balance-sheet refinancing of the 1,696-unit Lenox Terrace on Oct. 2. It also arranged $203.5 million of construction financing for a 184-unit East Village project in its Oct. 13 report, per this publication's records.