Pauls Corp. developed Quarry Townhomes at 250 Treeline Parkseven years ago and had it on the market in 2006. BryanLeonard, senior vice president and branch manager with the SanAntonio office of Capmark Finance Inc., attributes the refi to anacquisition, but details were unavailable. Bexar Central AppraisalDistrict still lists the Pauls Corp. as the owner so the old debtcould be tied to a partnership buyout.

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The Capmark-arranged loan has Redhills Quarry LP as the borrowerof record. Leonard has confirmed that the 96%-leased QuarryTownhomes is the owner's only holding in the area.

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Leonard says Pauls Corp. sought refinancing to secure morefavorable terms, securing the new capital from Freddie Mac on a 75%loan-to-value ratio. "They wanted to preserve prepaymentconsiderations," Leonard tells GlobeSt.com. "By doing interimfinancing, they could preserve prepayment flexibility while gettinga low interest rate."

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Leonard says the adjustable-rate loan has interest-only paymentsfor the first three years, with payments for the remainder based ona 30-year amortization. Leonard says Freddie Mac was specificallytargeted because of the lender's current leadership position."Between them and Fannie Mae, they're providing liquidity for themultifamily market at competitive rates," he adds.

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Situated on seven acres, the 13-building Quarry Townhomes is amix of one-, two- and three-bedroom units, ranging from 834 sf to1,455 sf. Rents range from $1,090 to $2,480 per month.

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