AXA Equitable Life Insurance Company has provided a $37.5m construction-to-permanent loan at a 50 percent loan-to-cost on Tema Development’s up-and-coming Cappella Museum District in Houston, Texas.
The loan, made through AXA’s advisor, Quadrant Real Estate Advisors, backs a $75m, 224-unit, seven-story luxury apartment project Tema is developing in Houston’s Museum District.
The 2.25-acre site at 1699 Hermann Drive is across the street from Hermann Park and near the new McGovern Centennial Gardens.
Tema broke ground in December on the property and plans to finish building its concrete skeleton and begin its outer brick facade by the end of the summer.
Due for completion in late 2016 (leasing is expected to start at the start of 2016), the property will feature 238,000 sq ft of studio, one- and two-bedroom units, in addition to five penthouses; a 12,000 sq ft courtyard; a 9,000 sq ft amenity area including a seasonal ice skating rink, fitness center and a sky lounge with views of downtown Houston; and a 351-space, five-story parking garage.
Quadrant Real Estate Advisors, as first reported in Real Estate Capital, is currently fundraising — with a $700m target — for its Quadrant Enhanced Debt Fund, a core commercial real estate debt investment vehicle. The firm’s 11th closed-end, private real estate debt fund will originate fixed-rate first mortgages for the acquisition, refinancing and recapitalization of core commercial real estate assets across the US.
An HFF debt placement team representing Tema was led by senior managing director Matt Kafka.