Hudson Bay Capital Provides $129M to Develop Luxury Apartments in Houston

One of the most exclusive neighborhoods in Houston is getting some new luxury apartments. 

Sade Real Estate has secured $128.5 million to finance the development of the Arno, a 168-unit luxury residential community in Houston’s River Oaks neighborhood, a wealthy enclave just outside downtown, according to a release.

Hudson Bay Capital provided the acquisition and development debt, while a Walker & Dunlop Capital Markets team of Sean Reimer, Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Dustin Stolly and Sean Bastian arranged the transaction. 

Yoni Sade, chairman and CEO at Sade Real Estate, spoke to the ongoing population growth of Houston in a statement, which has made the investment fundamentals of River Oaks attractive due to the neighborhood’s “highly selective development activity.”

“Walker & Dunlop and Hudson Bay Capital understood both the vision and unique positioning of the asset, helping us secure a financing structure that supports the development,” said Sade. 

Zachary Cion, managing director at Hudson Bay Capital, called the deal “a highly attractive financing opportunity” in a statement. 

Located at 2929 Weslayan Street in Houston’s River Oaks neighborhood — a mass-planned community anchored by the River Oaks Shopping Center that combines residential living with luxury retail and dining — the Arno is expected to begin development this year. 

Sean Reimer, senior managing director of capital markets at Walker & Dunlop, said that the River Oaks area’s luxury residential market is “one of the most supply-constrained” in the nation due to the lack of available land and ongoing demand for high-end residences. 

“The property’s scale, luxury positioning, and highly curated amenity package align with the evolving preferences of affluent buyers … within one of Houston’s most established neighborhoods,” said Reimer. 

Brian Pascus can be reached at bpascus@commercialobserver.com.