S3 Capital is solidifying its long-term presence in the Texan market. The Tannos Group has secured USD 28 million in construction financing for 'The Albritton', a four-storey, Class A, 111-unit multifamily property in Friendswood, Texas.
The financing from S3 Capital increases the lender's total investment in new construction projects in the 'Lone Star State' to almost USD 200 million since May 2025. No broker was involved in this transaction.
Strategic Investments in a Dynamic Market
Steven Jemal, Managing Director of Origination at S3 Capital, emphasised that Friendswood's strong school district is a key demand driver for families renting accommodation in the region. He also highlighted that The Tannos Group has developed approximately 200,000 square feet of multifamily space in the same submarket over the past 25 years. Jemal stated: "We view Texas as a long-term strategic opportunity, and this deal fits squarely within our area of focus."
'The Albritton' is being built at 408 South Friendswood Drive in Friendswood, a city in Southeast Texas, 20 miles south of Houston and 40 miles north of Galveston Island. The project will include studio to two-bedroom apartments and offer a total leasable area of 111,000 square feet. The overall complex features a two-storey car park, ground-floor retail units, and resort-style amenities.
Enabled by Amended Building Regulations
Construction on this property follows an amendment to the zoning plans by the Friendswood city administration, which had restricted new development in the city for over 20 years. According to S3 Capital, 'The Albritton' is the first purpose-built residential complex for rental purposes to receive building permits since the legislative changes.
S3 Capital's current financing is part of a series of significant previous transactions. These include USD 116 million in student housing financing at Texas State University in San Marcos in May 2026 and USD 46.5 million in construction financing for the development of a 306-unit garden apartment community in Denton, Texas, in May 2025. Jemal concluded: "Our pipeline in Texas continues to grow as we forge new relationships and demonstrate to local developers the advantages of working with S3."
