Colliers’ Donnelly/Levkov Team Finances $54 Million, 229-unit, Luxury Multifamily Project (Houston, Texas)
-The structured finance team headed by Jeffrey Donnelly and Dmitry Levkov represented Aventura, Florida - based DLC Residential in arranging both the construction loan and preferred equity-
New York, NY, April 17, 2018 – Colliers International announced today that its structured finance team led by Jeffrey Donnelly and Dmitry Levkov has facilitated the financing of a $54 million, 229-unit, luxury multifamily podium development in downtown Houston, Texas.
The project, designed by Houston - based architects, Mucasey & Associates, will consist of 229 luxury market rate rental units, ranging from studios to 2-bedrooms, and will include the following amenities - an outdoor swimming pool, yoga studio, workout room, club room, outdoor grilling/dining areas, and structured parking.
Colliers’ client, Aventura, Florida-based DLC Residential has completed over 5,300 units of Class A podium and garden-style multifamily product over a 14 year history. DLC’s core markets are Dallas, Houston, Minneapolis, Chicago, and Orlando. Additionally, Colliers represents DLC on expanding into the Denver market, where a 342-unit garden style development will break ground in late 2018.
The downtown Houston project is located on Crawford Street, just 2 blocks from Minute Maid Park, the stadium where the Astros play; and is part of a downtown renaissance which began several years ago.
Colliers’ Executive Director Jeffrey Donnelly, who led the capital raise, commented, “It’s an outstanding location downtown. It was a nice boost to the Houston profile/economy to have the Astros win the World Series this past year, but the steady strengthening of this submarket (and the broader Houston market) was already unfolding for some time before that. Houston had put up some strong growth numbers through 2017. Additionally, and supplementing that already strong growth, Hurricane Harvey had the effect of boosting the Houston multifamily sector quite significantly. Thousands of units were taken out of supply – permanently or temporarily - due to hurricane damage, and what little slack there was in the market was absorbed overnight.”
Laredo, Texas - based IBC Bank provided the $35 million construction loan. Donnelly commented, “IBC Bank was outstanding, and their Houston team was on point and focused throughout. They were super informed and super smart on this downtown submarket, which many other lenders had some reservations about. But IBC had financed another downtown project recently that had performed exceptionally well. They also knew that DLC delivers a truly exceptional, best-in-breed caliber product. I think that gave them the confidence to pursue this loan. IBC simply had a better handle on this MSA than any of the other lenders that explored this loan with us.” Jeff Samples, President of IBC Houston, stated “ We are passionate about Houston. DLC has proven to build a superior product which will only add to the resurgence of activity around Minute Maid Park.”
IBC Bank is a member of International Bancshares Corporation (NASDAQ: IBOC), a $12.2 billion multi-bank financial holding company headquartered in Laredo, Texas. International Bancshares was ranked 19th on Forbes’ prestigious list of 100 Best Banks in America in 2018.
Kansas City – based Platform Investments, a wholly owned subsidiary of Platform Ventures, provided the $8 million in preferred equity to complete the capitalization of the project. Platform Ventures is a firm that, through certain asset management subsidiaries, manages and invests in real estate, real estate-related assets, real estate technologies and real estate-focused companies located throughout the United States.
Colliers’ Managing Director, Dmitry Levkov commented further on the sponsorship, “The principals of DLC Residential are a couple of young, wonderfully aggressive guys who have already established a 5,300-unit track record of outstanding caliber multifamily product. They are a fast-growing, dynamic, and impressive group. They are known for having the best caliber, best finish-quality developments in the markets in which they operate. In addition to a project in Denver, Colliers also represents DLC on another project in Houston (Kirby submarket). We look forward to pairing this fast-growing developer with the debt and equity solutions to accelerate their growth and tackle all of the projects they have in their sites.”
The Donnelly/Levkov Team is part of Colliers International’s New York Capital Markets division. The team’s focus is on debt and equity solutions for real estate properties and projects across all asset classes - throughout the entire United States, as well as internationally. The Donnelly/Levkov Team is currently financing projects in New York City, Houston, Denver, Florida, Chicago, and Punta Cana, Dominican Republic.
Platform Investments is an SEC registered investment adviser. Registration of an investment adviser does not imply any level of skill or training. All information herein is relating to general business information and is intended for informational purposes only. Actual events are difficult to predict, are beyond our control and may differ from those assumed. There can be no assurance that forward-looking statements will materialize. Nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security and may not be relied upon in connection with the purchase or sale of any security. In addition, nothing herein constitutes investment advice.
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