Zoning Win, Strong Market Dynamics Drive $28M Financing for Friendswood Multifamily Development

Features July 24, 2026| | Amy Wolff Sorter

Friendswood, TX’s restrictive zoning environment has limited multifamily development for decades. However, the Tannos Group obtained the necessary entitlements and permits, which led to the ground-breaking of the 111-unit, Class A Albritton Apartments and a $28 million, 24-month construction loan from S3 Capital.

The Albritton is Friendswood’s first purpose-built rental build in more than two decades. Delivery is scheduled for early 2028.

Steven Jemal, managing director of origination for S3 Capital, told ApartmentBuildings.com that the sponsor’s longstanding presence in the Houston suburb was a key factor in navigating the complex entitlement process.

“The sponsor identified a creative way to gain zoning approval — a strategy that few developers would likely have been able to execute,” Jemal said. “Their longstanding presence in Friendswood and extensive local development experience were key advantages in navigating the entitlement process and securing approval for a project of this scale.”

Beyond the sponsor’s experience, S3 evaluated the area’s underlying market fundamentals, including its location in the highly-rated Friendswood Independent School District and its access to major employment hubs. The suburb is located near the Texas Medical Center, NASA’s Johnson Space Center corridor, the Port of Houston and a variety of employers in energy, aerospace, healthcare and professional services.

The Albritton at 408 S. Friendswood Dr. will feature studio, one- and two-bedroom apartments, ground-floor commercial space, resort-style amenities, a two-level covered parking garage and marble finishes throughout common areas.

The Friendswood transaction represents S3 Capital’s third Texas financing. The lender previously provided a $116 million student housing construction loan at Texas State University in San Marcos in May 2026 and a $46.5 million construction loan for a 306-unit garden-style apartment community in Denton in May 2025. Jemal said S3 continues studying Texas markets as apartment construction activity begins to moderate following several years of elevated deliveries.

“We’ve been closely monitoring the various submarkets across the state, and after several years of elevated apartment deliveries, we’re now seeing new supply decline meaningfully in many markets,” Jemal said.

As construction pipelines normalize and demand remains supported by population and employment growth, S3 sees opportunities across markets with diverse economic drivers.

“That made this an attractive time to continue expanding our lending platform in Texas,” Jemal said. “We like markets with diversified employment, strong population growth and multiple demand drivers.”

Other Features

3.8% HUD Loan Assumption Attracts 10+ Bidders for $26.6 Million Modesto Apartment Sale

A Southern California family office made its first Modesto multifamily acquisition by purchasing the 100-unit Marc at 1600 for $26.6 million through a 1031 exchange. The buyer was one of more than 10 bidders for the property, which was marketed by The Mogharebi Group (TMG) of Costa Mesa, CA, on behalf of seller Tesseract...

Partial Office-to-Residential Conversions and Financing: The Case for a Floor-by-Floor Approach

Above photo: 100 Wall Street, VTS Marketplace Office-to-residential conversions might bring to mind occupier relocations, gutted interiors and retrofitted systems. Then, there are the partial office-to-residential conversions, in which some space is allocated to office occupiers, while upper floors are converted into for-rent units. “We are seeing partial conversions become an increasingly relevant option for...

Why Bonaventure Waited Four Years to Break Ground on the 344-Unit Attain at Swift Creek

In an environment where multifamily developers scramble to make projects work economically, Bonaventure took a different approach with Attain at Swift Creek in Chester, VA, a southern suburb of Richmond. It waited. The 58-acre site was under contract for four years while the developer worked through entitlements, changing construction costs and interest rates, and a...

Zoning Win, Strong Market Dynamics Drive $28M Financing for Friendswood Multifamily Development

Other Features

3.8% HUD Loan Assumption Attracts 10+ Bidders for $26.6 Million Modesto Apartment Sale

Partial Office-to-Residential Conversions and Financing: The Case for a Floor-by-Floor Approach

Why Bonaventure Waited Four Years to Break Ground on the 344-Unit Attain at Swift Creek

Brokers

Remax Professionals

Jared Ennis

Rick Recckio

Eamonn McConnell

Lenders

Management

Essex Property Trust, Inc.

Josh A

Bob Tuteur

Andrew Schildcrout