(Read more on the debt and equity markets andthe multifamilymarket .)

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LUFKIN, TX-A development group from Houston has refinanced threecomplexes from its all-Texas apartment portfolio for $33 million.The collateral is 520 units in Lufkin, Beaumont andNacogdoches.

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Leyendecker Group, which built the complexes between 2000 and2003, obtained financing to fund future development projects, saysJim Kirkpatrick, vice president with Live Oak Capital Ltd. inHouston. He arranged the 10-year, non-recourse loan through CIBCWorld Markets Inc. of Toronto, ON. He adds that Leyendecker Groupis in the process of refinancing its other complexes.

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“There was a lot of captured equity in those properties. At onepoint they were actually thinking of selling them,” Kirkpatricksays, “but they did an analysis and determined they could refinancetheir holdings, pull out the equity they needed and still maintainownership.” Kirkpatrick tells GlobeSt.com that Leyendecker Groupwill begin construction on additional projects in the state n threeto six months.

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Kirkpatrick says placing the loan offered some challenges, giventhe recent turmoil in the capital markets. Although the borrower'spricing did go up, the loan remained interest-only at 6.4% for fiveyears and 30-year amortization. The loan to value is 80%.

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Kirkpatrick says the loan request attracted a great deal ofinterest, given Leyendecker Group's reputation for building qualitymultifamily. “He's a good apartment builder who builds a goodproduct and it shows in the results,” he adds. The refinancedassets at 95% occupied.

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The developer's collateral is the 138-unit Shadow CreekApartments at 2807 Daniel McCall Dr. in Lufkin; 196-unit EagleLanding Apartments at 3980 N. Major Dr. in Beaumont; and 186-unitUniversity Hills Apartments at 4704 N. University Dr. inNacogdoches. The trio has one-, two- and three-bedroom unitsaveraging 890 sf, with the monthly rent averaging $815.

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