KoRes Corporation, a multifamily developer based in South Florida, has picked up a $27.5 million loan from Principal Life Insurance to refinance a recently built apartment community called Regalia Bella Terra near Houston, Commercial Observer can exclusively report.
The three-year loan, intended to hold over the Katy, Texas property as it continues to stabilize, knocks out the construction financing on the two-year-old asset, which had been provided by Pensam Funding. Cooper-Horowitz‘s Ryan Horowitz and David Horowitz sought out the mortgage on behalf of KoRes. Under the loan terms, the developer won’t owe interest payments until the debt matures in 2022.
Ryan Horowitz praised Principal Life, an insurer based in Des Moines, Iowa, as an especially dependable source of limited-term debt.
“They always provide certainty of execution,” Horowitz said of Principal. “They’re extremely easy to work with and extremely reliable, and they have a terrific bridge platform.”
The 12-building complex stands at 24151 Bella Dolce Lane in the town of about 20,000, which is 30 miles west of downtown Houston. Its 227 units are split among one-, two- and three-bedroom layouts. Residents have access to a swimming pool, a putting green and a clubhouse.
Rents on one-bedroom units start at $1220 per month, according to Regalia’s website. The largest available three-bedroom apartments—1,550 square feet—go for $2,140 per month.
The location might be a trek from downtown Houston, but it’s a much shorter drive from the Houston Energy Corridor, a stretch of Interstate 10 where a handful of global oil giants house their U.S. corporate headquarters. Companies such as BP, ConocoPhillips and Shell Oil all maintain a significant presence in the suburban office district. Together, the five biggest firms there employ more than 30,000 people at their Energy Corridor facilities, according to data from a local consulting firm.
Representatives for KoRes and Principal Life didn’t immediately respond to inquiries.