Cushman & Wakefield Secures $95.74 Million Financing for 626-Unit Texas Multifamily Portfolio
Cushman & Wakefield has successfully arranged a comprehensive financing package totaling $95.74 million for a two-property multifamily portfolio in Texas on behalf of real estate investment firm Sundance Bay. The financing underscores continued investor confidence in high-quality multifamily assets across the Texas housing market, despite ongoing challenges in the lending environment and increasing regulatory requirements.
The transaction was completed through Cushman & Wakefield’s Texas Equity, Debt & Structured Finance (EDSF) team and included a combination of senior debt and mezzanine financing. The capital stack consisted of $76.24 million in senior financing provided by Benefit Street Partners and an additional $19.5 million mezzanine loan arranged through CCL Capital. Together, the financing provides Sundance Bay with the capital needed to support its investment strategy while positioning the portfolio for long-term value creation.
The portfolio comprises 626 multifamily units spread across two recently developed Class A apartment communities located in two of Texas’ strongest residential markets. The assets include Grove East, a 324-unit garden-style community in Humble, Texas, and Rowlett Station, a 302-unit mid-rise apartment community in Rowlett, Texas. Both properties were completed in 2021 and have established themselves as attractive housing options in rapidly growing suburban markets.
Grove East is situated at 9300 North Sam Houston Parkway East in Humble, an area that continues to experience significant residential and commercial expansion. The Class A property offers modern amenities and benefits from its proximity to Generation Park, a 4,300-acre master-planned mixed-use development that has become one of the Houston region’s fastest-growing employment centers. The development has attracted major corporate investments and continues to drive population growth and housing demand throughout the surrounding area.
At the time the financing closed, Grove East reported an occupancy level of 93 percent, reflecting strong leasing activity and sustained tenant demand. The property also presents attractive long-term value potential, as future adjustments related to Housing Finance Corporation rent restrictions could create opportunities for increased rental income in line with prevailing market rates. This potential rent growth represents a significant component of Sundance Bay’s investment strategy for the asset.
The second property in the portfolio, Rowlett Station, is located at 3601 Melcer Drive in Rowlett, northeast of Dallas. The Class A mid-rise community offers residents direct access to public transportation through its location immediately adjacent to the Downtown Rowlett DART Blue Line Station, providing convenient rail service into Downtown Dallas. This transit-oriented location enhances the property’s appeal to professionals seeking efficient commuting options while enjoying suburban living.
Rowlett Station was approximately 92 percent occupied when the financing transaction closed. Although the property has demonstrated healthy occupancy, current rental rates remain below those of comparable apartment communities in the surrounding submarket. This pricing gap provides Sundance Bay with an opportunity to implement operational improvements and revenue management strategies aimed at increasing rental income while maintaining strong occupancy levels.
One of the defining characteristics of the transaction was the complexity introduced by Housing Finance Corporation (HFC) income restrictions attached to both properties. These restrictions are designed to promote housing affordability by limiting tenant income levels and rental pricing. While beneficial for supporting affordable housing objectives, the regulatory requirements often create additional layers of complexity during refinancing transactions.
Because both assets were subject to HFC regulations, the financing required extensive coordination among multiple stakeholders, including lenders, legal advisors, regulatory authorities, and ownership representatives. In addition, the transaction involved structuring both the senior debt and mezzanine financing simultaneously, requiring careful alignment of loan terms, documentation, and approval processes.
The financing assignment was led by Managing Director Chase Johnson and Senior Associate Caleb Riebe, members of Cushman & Wakefield’s Texas Equity, Debt & Structured Finance team. Their expertise in multifamily capital markets and structured finance played a critical role in successfully navigating the regulatory and financing challenges associated with the transaction.
The EDSF team also collaborated closely with several specialized advisory groups within Cushman & Wakefield. Support for the Grove East financing was provided by the firm’s Houston Multifamily Advisory Group, led by Jennifer Campbell and Josh Hoffman. Assistance on the Rowlett Station portion of the transaction came from the Dallas-Fort Worth Multifamily Advisory Group, led by Grant Raymond and Asher Hall. Additional expertise was contributed by Richard Kourbage of Greystone, helping ensure a coordinated execution across all parties involved.
Reflecting on the transaction, Chase Johnson emphasized the significant level of coordination required to bring the financing to completion.
“This was one of the more structurally involved deals we’ve worked through in recent memory,” Johnson said. “Between the HFC consent requirements on both assets, bifurcating the capital stack across a senior lender and a mezz lender simultaneously, and doing all of it in a complex credit environment, there were a lot of moving parts. Sundance Bay was a great partner throughout the process, and we’re proud of the execution.”
The successful financing demonstrates the continued availability of capital for high-quality multifamily investments despite a more selective lending environment. As interest rates and credit conditions remain dynamic, lenders continue to prioritize well-located, recently constructed assets with strong occupancy and clear value-add potential. Both Grove East and Rowlett Station fit this investment profile by combining modern construction, favorable market fundamentals, and opportunities for future income growth.
Texas remains one of the nation’s most active multifamily investment markets, driven by sustained population growth, expanding employment opportunities, and ongoing corporate relocations. Markets such as Houston and the Dallas-Fort Worth metroplex continue to attract institutional investors seeking stable, income-producing residential assets capable of delivering long-term returns.
For Sundance Bay, the financing provides a solid capital structure that supports its business plan for both communities while allowing the company to capitalize on future operational improvements and market-driven rent growth. For Cushman & Wakefield, the successful execution further reinforces the firm’s capabilities in structuring sophisticated debt solutions for multifamily investors facing increasingly complex financing and regulatory environments.
The transaction also highlights the importance of collaboration among lenders, advisory teams, and ownership groups in delivering customized financing solutions that meet both regulatory requirements and investment objectives. As multifamily markets continue to evolve, transactions of this nature demonstrate the growing role of experienced capital markets advisors in helping investors secure competitive financing while maximizing asset value.
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