Imperial Ridge Real Estate Capital's Major Initiative in Houston
In a remarkable move toward improving housing accessibility,
Imperial Ridge Real Estate Capital has successfully acquired $6.9 million in financing to redevelop a neglected hotel into an affordable housing complex in Houston. The initiative aims to transform a deteriorating property into a vibrant community resource, reflecting the urgent need for workforce housing in the area.
The project's foundation lies in a collaboration between Imperial Ridge, a prominent private commercial real estate lender based in Colorado, and Amalgamated Bank. The financing unfolds in two parts:
$4 million allocated for
Commercial Property Assessed Clean Energy (C-PACE), alongside
$2.9 million in senior construction financing. The funds will support the renovation of a once financially burdensome hotel into much-needed housing units, all while leveraging sustainable practices.
Located at
702 N. Sam Houston Parkway E, the site, originally constructed as a Holiday Inn in 1983, has been plagued by maintenance issues and a lack of investment for years. Now, it is set to undergo a full renovation led by
The 702 LLC, which purchased the property in 2024. The project aims to convert the aging structure into a total of
137 studio and one-bedroom apartments, providing affordable housing options at rates
25% below the market average, inclusive of utilities.
As the greater
Houston area grapples with a shortage of affordable housing, particularly for lower-income workers, this project is timely. Flooded with population growth, the city faces escalating demands for housing solutions that accommodate a diverse workforce. Mark Boyer, CEO of Imperial Ridge, emphasizes the critical nature of aligning creative financing options with needed community resources: _“In today's capital environment, it takes creative, aligned financing to bring projects like this across the finish line.”_
The C-PACE financing is noteworthy in its structure; it facilitates a long-term, fixed-rate, non-recourse financing plan allowing property owners to cover up to
100% of eligible energy efficiency upgrades without typical reliance on equity or cash reserves. For The 702 initiative, this means the C-PACE financing remains attached to the property itself, providing financing continuity even in the event of a sale. This aspect can potentially enhance exit returns for sellers while easing capital requirements for buyers.
Renovation efforts are already in progress, with two of the planned floors completed and leasing anticipated to kick off in the
fourth quarter of this year. Improvements funded through C-PACE financing will include integrated energy upgrades such as new HVAC systems, energy-efficient lighting, window replacements, and a rooftop solar array. These enhancements will be significant to the overall sustainability goals of the project, projected to yield
$13.4 million in total utility savings over its life, as per assessments conducted by third-party engineers.
Mark Boyer expresses optimism and pride in being a part of such a transformative project, stating, _“We’re excited to be a part of this critical development which adds much-needed workforce housing in the city of Houston.”_ The strategic redevelopment of the
702 N. Sam Houston Parkway underscores a broader commitment to sustainability and community care, encouraging the redevelopment of underutilized assets into practical solutions that address pressing housing needs, ultimately benefiting the people of Houston.
For those interested in the financial progress and capabilities of Imperial Ridge, further information can be accessed at
imperialridgecap.com. As the project continues to evolve, it stands as a testament to innovative financing strategies in the realm of real estate.
In conclusion, the successful funding and ongoing efforts to repurpose this aging hotel are vital steps toward achieving more accessible housing solutions in
Houston, reflecting an encouraging trend in adaptive reuse of properties in similar markets across the nation.