HOUSTON — Holliday Fenoglio Fowler secured $66 million in construction financing for Phase I of the Buffalo Heights development, a grocery-anchored mixed-use project on Washington Avenue near Heights Boulevard.
The seven-story building will include a 96,000-square-foot ground-level H-E-B grocery store, 36,800 square feet of boutique office space, 232 multifamily residences and about 2,000 square feet of additional street-level retail. The project’s first phase is scheduled for completion in 2019.
HFF arranged the financing on behalf of the owner, BKR Memorial II, LP, and the developer, Midway, placing the loan with U.S. Trust, Bank of America Private Wealth Management.
The multifamily portion, called St. Andrie, will offer studio, one- and two-bedroom apartment layouts ranging from 553 to 1,545 square feet, many with views of downtown Houston, Buffalo Bayou and River Oaks.
Midway, a Houston-based development firm, was selected to lead the property’s redevelopment on behalf of Russell Gordy, the project owner and president of SG Interests.
Buffalo Heights sits within a 50-acre mixed-use district adjacent to Buffalo Bayou Park, Memorial Park, The Heights, the Washington Avenue corridor and Downtown Houston.
Founded 49 years ago, Midway is a private real estate investment and development company. Its portfolio includes roughly 45 million square feet of completed and in-progress projects across 23 states and northern Mexico, covering mixed-use centers, corporate headquarters, multifamily housing, entertainment and hospitality venues, industrial parks, and master-planned resort and residential communities.
BKR Memorial is a Houston-headquartered, privately held family business managed by Russell Gordy. In addition to real estate investment and development, Mr. Gordy’s business interests have included oil and natural gas, ranching and other enterprises across Texas, Colorado, New Mexico, Montana, Wyoming and elsewhere in the United States.
The HFF debt placement team representing the borrower was led by Managing Director Colby Mueck and Director Matthew Putterman.