Walker & Dunlop Arranges $110 Million Refinancing for Lone Star Funds' Stafford Multifamily Properties
Walker & Dunlop announced Oct. 14 that it has arranged a $110 million refinancing for 1879 at the Grid and Arc at the Grid, two Class A multifamily properties totaling 731 units within a 192-acre mixed-use development in Stafford, Texas. The loan, a floating-rate, interest-only facility from TPG Real Estate Credit, was placed on behalf of the properties' owner, Lone Star Funds.
Walker & Dunlop Capital Markets Team Arranges the Loan
Walker & Dunlop's Capital Markets Institutional Advisory group served as exclusive advisor to Lone Star Funds on the transaction. The team that arranged the financing included Dustin Stolly, Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Sean Reimer, Michael Ianno and Edward Leboyer.
"1879 at the Grid and Arc at the Grid are well-located multifamily assets that benefit from the continued growth of the Stafford and Sugar Land corridor," said Stolly, senior managing director of Capital Markets Institutional Advisory at Walker & Dunlop. "TPG Real Estate Credit recognized the strength of the assets and their position within the Southwest Houston market, as well as Lone Star's reputation as a best-in-class Sponsor, resulting in a financing solution that aligned well with our client's objectives."
Property Details: 1879 at the Grid and Arc at the Grid
The two communities were built in 2019 and 2020, respectively, and together span approximately 653,000 rentable square feet. 1879 at the Grid, at 11107 W. Airport Blvd., contains 385 units, while Arc at the Grid, at 11101 W. Airport Blvd., contains 346 units across nine buildings.
Both properties offer studio, one-, two- and three-bedroom residences with modern finishes and open-concept layouts. Amenities include resort-style pools, fitness and wellness centers, resident lounges, coworking spaces, pet parks, outdoor lounges and courtyards, package lockers, detached garages and carports, barbecue areas and fire pits.
The properties are located along the U.S. 90A corridor with direct access to Interstate 69, the Sam Houston Tollway and Highway 6. Those routes connect to Houston employment centers including the Texas Medical Center, Uptown/Galleria, Greenway Plaza, Downtown Houston and the broader Fort Bend County growth corridor.
Loan Metrics and Prior Financing
The $110 million loan equates to approximately $150,479 per unit and about $168 per rentable square foot, based on the reported unit count and square footage. The two communities were previously financed in connection with Lone Star Funds' acquisition, when Hudson Advisors obtained $118 million in financing for the properties.
Houston Multifamily Market Context
The refinancing comes as Houston's multifamily market absorbs substantial new supply. Houston effective rent fell to $1,327 in the second quarter of 2026, down 1.0% year over year, marking the second consecutive annual decline. Demand has improved, however: the market recorded 8,957 units of net absorption in the quarter, nearly 49% above the prior year's pace, and vacancy declined to 6.19%, though it remained 44 basis points higher than a year earlier.
On the investment side, Houston multifamily cap rates reached 6.28% in the second quarter, having risen for eight consecutive quarters. The market's average price per unit was approximately $142,420.
A floating-rate, interest-only structure can reduce near-term debt-service requirements, while exposing a borrower to future movements in benchmark interest rates.
Walker & Dunlop's Non-Agency Capital Markets Activity
Walker & Dunlop said its Capital Markets team sourced more than $13.9 billion from non-Agency capital providers in the first half of 2026, including nearly $9.6 billion for multifamily properties. The firm (NYSE: WD) describes itself as one of the largest commercial real estate finance and advisory services firms in the United States and internationally.
Outlook
The transaction pairs a sponsor, Lone Star Funds, with a private-credit lender, TPG Real Estate Credit, for two recently built Class A communities in the Southwest Houston market, at a time when Houston rents are declining while absorption and vacancy trends have shown improvement.
Sources
Walker & Dunlop, "$110 Million Refinancing Arranged By Walker & Dunlop For Stafford Multifamily Properties," Oct. 14, 2026: https://www.walkerdunlop.com/news/110-million-refinancing-two-multifamily-properties