TX New Construction Featured Deal in Northeast Houston, Texas
Seth Blumenthal, one of Asset Based Lending’s leading loan officers, recently closed a ground up new construction loan for a 4-unit townhome development in Northeast Houston, Texas.
This deal was brought to ABL by a real estate investment broker looking to finance a client with fast capital for a new construction project, and Seth was ready to help.
The borrower purchased a parcel of land in 2022 for $110,000 and contacted ABL to refinance and obtain a loan for the construction of four townhomes.
To accomplish this project ABL offered this borrower a blanket loan of $807,000.
This is a first-time borrower with ABL who has previous experience working on projects like this. The borrower has several other ongoing projects in the area.
Due to their level of experience in new construction, they were a good candidate to receive a loan amount that equates to 85% LTC. For the construction, each property received $210,000 in funding from this loan.
The new construction features a layout designed for convenience and functionality. The first floor boasts a spacious two-car garage with a mudroom entrance leading into the open-plan kitchen, dining, and living areas.
Upstairs, all three bedrooms are accompanied by two full bathrooms, with an additional half bath on the main floor for added convenience.
The lot promises potential, with work yet to begin. As for finishes, the homes will showcase mid-level quality with some custom touches, including a striking façade combining stone veneer, brick, and HardiePlank siding.
The architectural shingle roof and vinyl double-hung windows from a local company will ensure durability and energy efficiency for this property.
Generous ceiling heights of 10 feet on the first floor and 9 feet on the second floor will enhance the sense of space and airiness.
While a basement is not included in the construction, the floors feature tile on the first floor and engineered hardwood for the second floor and bedrooms.
Standard hollow-core interior doors will enhance the home, with no sliders. The kitchen will have shaker-style cabinets, granite or quartz countertops, and stainless-steel appliances, centered around a sizable six-person island.
Bathrooms offer luxurious features such as a standing shower, standalone tub, and dual vanity in the master, while the other full bath in the upstairs hall and half bath on the main floor will cater to practical needs.
Though lacking crown molding, the townhomes include standard baseboards throughout. City water and sewer services are available, with additional features including an underground drainage system, fencing to divide properties, and a shared driveway with separate walkways, adding to the community’s appeal and functionality.
The borrower anticipates a completion timeline of fewer than nine months for this project, with their intended exit strategy revolving around listing the townhomes for final sale.
In 2023, Houston, Texas earned the title for the highest new home construction rate and has continued to be the most active real estate market for the last decade.
According to Redfin in Q1 2024, the median home price in Houston, TX increased by 4.6% compared to the previous year, reaching $309,000.
Homes in the area typically sold after an average of 48 days on the market, slightly faster than the 50 days recorded the previous year. The number of homes sold in Q1 2024 totaled 1,243, showing a rise from 1,163 sales in the same period last year.
Expectations for the 2024 housing market in Houston, Texas suggest that the supply of homes will continue to be limited, which will result in sales remaining below typical levels. However, sales are projected to slightly exceed those of 2023.
The share of listings and sales attributed to new construction may increase, primarily due to existing homeowners being hesitant to relocate. Additionally, it is anticipated that prices will experience modest growth throughout 2024.
Seth has been involved in private capital industries for 20 years, becoming an expert in finance and lending. For the last 7 years, he has been helping real estate investors finance their projects, with a strong focus on speedy closings.
Seth specializes in building strong relationships, analyzing deals, and quickly determining suitability for his clients.
To learn more about Asset Based Lending’s New Construction Loans, or to work with Seth on potential deals in Texas, get qualified today.