Sundance Bay has secured a $95.7 million financing package for a two-property multifamily portfolio totaling 626 units in Texas. Cushman & Wakefield’s Texas Equity, Debt & Structured Finance group arranged the capital stack, which combines senior and mezzanine debt from two separate lenders.
The financing is composed of $76.2 million in senior debt provided by Benefit Street Partners and a $19.5 million mezzanine loan originated through CCL Capital. The structure supports a portfolio of recently built, income-restricted Class A rental communities with strong in-place occupancy.
The portfolio includes Grove East, a 324-unit Class A garden-style community completed in 2021 and located at 9300 N. Sam Houston Pkwy E. in Humble, Texas. Grove East was reported to be 93% occupied at the time of closing, indicating a largely stabilized lease-up profile for a relatively new asset.
The second asset, Rowlett Station, is a 302-unit Class A mid-rise community, also delivered in 2021 and located at 3601 Melcer Drive in Rowlett, Texas. Rowlett Station was 92% occupied at closing, demonstrating similarly strong tenant demand and occupancy performance across the portfolio.
Both Grove East and Rowlett Station are subject to Housing Finance Corporation income restrictions, meaning the properties operate under affordability-related covenants tied to household income limits. The portfolio-level financing has been structured against this backdrop of income-restricted operations, combining senior and mezzanine components to support Sundance Bay’s capital needs.
On the advisory side, Chase Johnson and Caleb Riebe led the Cushman & Wakefield Equity, Debt & Structured Finance team responsible for arranging the transaction. They were supported by colleagues Jennifer Campbell, Josh Hoffman, Grant Raymond and Asher Hall. In addition, Richard Kourbage of Greystone contributed to the execution of the financing.
The financing aligns institutional lenders and advisors around recently constructed, Class A multifamily assets with high occupancies and income-restriction overlays. While specific loan terms such as maturity, interest rate and amortization were not disclosed, the capital structure underscores ongoing lender engagement in the Texas multifamily market for stabilized, income-restricted communities.
