S3 Capital appears to be in Texas for the long haul. 

Tannos Group has secured $28 million in construction financing to build the Albritton, a four-story, 111-unit Class A multifamily development in Friendswood, Texas.

S3 Capital provided the debt, bringing the lender’s total to just under $200 million in new construction financings across the Lone Star State since May 2025. 

No broker was listed on the transaction. 

Steven Jemal, managing director of origination at S3 Capital, noted that the strong school district of Friendswood is a demand driver for families to rent in the area, and that Tannos Group has built roughly 200,000 square feet of multifamily developments in the same submarket for 25 years. 

“We see Texas as a long-term strategic opportunity and this deal is right in our sweet spot,” he said. 

Located at 408 South Friendswood Drive in Friendswood — a southeastern Texas city 20 miles south of Houston and 40 miles north of Galveston Island — the Albritton will feature studios to two-bedrooms and span 111,000 rentable square feet. The overall complex will include a two-level parking garage, ground-floor retail and resort-style amenities. 

Construction of the asset comes after Friendswood politicians amended zoning laws that had restricted new development in the city for more than 20 years. The Albritton became the first purpose-built rental complex to receive construction entitlements since laws were amended, according to S3 Capital. 

The loan from S3 Capital comes after the New York-based real estate lender financed $116 million in student housing construction at Texas State University in San Marcos in May 2026, and $46.5 million in construction financing to build a 306-unit garden-style community in Denton, Texas, in May 2025. 

“Our pipeline in Texas continues to grow as we build new relationships and show local developers the benefits of working with S3,” said Jemal. 

Brian Pascus can be reached at bpascus@commercialobserver.com.