Legalist Provides $50M for Chapter 11 Debt Reorganization of Houston Real Estate Development
Legalist, Inc., a private credit lender, announced the origination of a $50 million multi-draw financing package for a large real estate development in the Houston suburbs.
The borrower is Arete Real Estate & Development Co. and the property is at 50 Crosby Pines, a spokesperson told Connect Money. Arete will leverage the funds for a complex Chapter 11 debt reorganization.
The transaction includes an 18-month term with favorable yield and low leverage, support for the development single-family residential properties in suburban Houston, TX, funds allocated for debtor reorganization, obligation restructuring, and critical infrastructure development.
“This financing package demonstrates Legalist’s ability to navigate complex bankruptcy scenarios while identifying and supporting promising real estate opportunities,” said Chris Wren, portfolio manager at Legalist, Inc. “By providing essential capital in a challenging environment, we’re not only facilitating the reorganization of our borrower but also contributing to the growth of Houston’s vibrant housing market.”