Lone Star Funds has refinanced a two-property, 731-unit multifamily portfolio in southwest Houston for $110 million through a floating-rate, interest-only loan from TPG Real Estate Credit. The deal covers 653,000 square feet across two communities, Arc at the Grid and 1879 at the Grid, located within a 192-acre mixed-use campus known as The Grid.
Walker & Dunlop Capital Markets served as exclusive advisor to Lone Star Funds in arranging the loan. The properties sit on the former Texas Instruments campus, where a $500 million redevelopment includes retail, office, and hospitality spaces. The portfolio was acquired in January 2022 by Hudson Advisors, an affiliate of Lone Star Funds, from JLB Partners for an undisclosed price. At the time, Natixis provided a $98 million loan to fund the purchase.
Both communities feature modern finishes, open-concept layouts, and unit sizes ranging from 529 to 1,654 square feet. Arc at the Grid, completed in 2021, spans 36.04 acres and offers rents from $1,215 to $2,719, averaging $1,754. 1879 at the Grid, built in two phases in 2019, covers 11.66 acres with rents between $1,175 and $2,672, averaging $1,692. 1879 at the Grid is roughly 94 percent occupied, according to Yardi Matrix.
Amenities include resort-style pools, fitness centers, coworking spaces, and outdoor lounges. The properties are about 18 miles southwest of downtown Houston, near major employment hubs like the Texas Medical Center and Uptown/Galleria. Access to the Sam Houston Tollway and Highway 6 connects residents to broader Fort Bend County growth corridors.
The refinance follows a recent trend of Lone Star Funds monetizing Texas assets. Last December, the firm sold two 673-unit communities in Irving to KKR, backed by an $118 million loan from Rialto Capital Management. Earlier this year, an affiliate secured a $235 million loan from Marathon Asset Management to refinance an 11-property, 1,563-unit senior housing portfolio across Texas and Florida.
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