Houston-Area Resi Development Gets $28M LifeCo Refi


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.

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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.