Pauls Corp. developed Quarry Townhomes at 250 Treeline Park seven years ago and had it on the market in 2006. Bryan Leonard, senior vice president and branch manager with the San Antonio office of Capmark Finance Inc., attributes the refi to an acquisition, but details were unavailable. Bexar Central Appraisal District still lists the Pauls Corp. as the owner so the old debt could be tied to a partnership buyout.

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

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

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

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