Janover Arranges Fannie Mae Small Loan for Texas Multifamily

Arbor has provided $1 million in financing for the acquisition of Lofts at Taft, a 35-unit community in Taft, Texas. The 5-year, non-recourse Fannie Mae Small Loan closed through the Janover financing platform and is structured with a 4.5-year yield maintenance provision and full-term interest-only payments. Janover’s Brandon Ramineh, director of capital markets, facilitated the deal between the lender and the borrower.

Completed in 1975, Lofts at Taft is located at 919 Fetick Ave. and has a mix of one- and two-bedroom units ranging between 520 and 869 square feet. The property is only a 10-mile drive from the Northshore Plaza retail center and is roughly 15 miles north of Corpus Christi’s Central City.

According to Marcus & Millichap, the property has benefitted from $405,014 in recent capital improvements, including updates to the HVAC systems, garage parking, and roofing. Unit interiors received the largest overall improvements, and each comes with waterproof vinyl flooring, furnished kitchens, a washer and dryer, resurfaced countertops, and two-tone paint.

Investor Hesitation: Bigger in Texas?

Even as the cost of capital remains high, the influx of new and returning jobs across multiple industries in the region has left unemployment in most of the major Texas metros at pre-pandemic levels — a solid indicator that there may still be room for successful multifamily investment in the near future. In fact, demand in those regions has pushed rent prices higher, with some regions like Austin and Dallas boasting year-over-year increases in the double digits.

However, the impacts of inflation and the subsequent rate hikes have left too many in a state of uncertainty. As rates climb higher, multifamily transactions will continue to moderate as sellers and buyers are forced to embrace a wait-and-see approach. Nonetheless, once investors adjust to the new realities and learn to navigate the higher interest rate environment, liquidity will return to the markets, generating steady investment activity across the state.