Built in 2000, Stone Brook is a garden-style apartment complex that features one-, two- and three-bedroom floorplans. The property offers extensive community amenities such as a resort style pool, a playground, a dog park, gated access and covered parking. Nearby attractions include the Baytown Nature Park, San Jacinto Museum and the Baytown Wetlands Center.
Situated next door to the world’s largest petrochemical and port industrial base, Stone Brook benefits from proximity to numerous employers involved with base operations. Among these employers are ExxonMobil, Covestro, Chevron Phillips, Houston Methodist Baytown Hospital and Altus Baytown Hospital.
Newmark Multifamily Capital Markets Vice Chairman Zach Springer represented the seller, Knightvest Capital, a Dallas-based private equity investment firm that specializes in repositioning multifamily assets. Vice Chairman Tip Strickland of Newmark’s Debt, Equity & Structured Finance team helped arrange the 10-year permanent fixed-rate loan on behalf of the buyer, Bluebird, a multifamily investment firm. The financing was secured through Freddie Mac at a loan-to-value ratio above 80%, with seven years of interest-only.
“Knightvest originally acquired Stone Brook as it was seeking to reposition an asset with stable, long-term cash flow that would attract future investors,” said Springer. “Our team was able to identify the ideal buyer, all while navigating the rising interest rate environment, resulting in a successful close.”
“Even while the 10-year U.S. Treasury yield saw an increase, the Newmark debt team was able to hold the loan proceeds steady,” added Strickland.
According to Newmark Research, absorption across the United States multifamily market surged to 98,429 units in the first half of 2023, with an increase of 83,449 units in the second quarter of 2023. Absorption from the first half of 2023 nearly quadrupled the absorption seen in the first half of 2022. Demand is anticipated to continue accelerating in the second half of 2023 and the first half of 2024.