Suburb's Rare Op Fuels $16.3M Loan for 248 Units

Doug Ryan and Gayle Temple, both of Dallas-based Malone Mortgage Co., arranged the 40-year financing package through HUD's 221 (d)(4) full-insurance Multifamily Accelerated Processing program. The loan carries a 6.93% interest.

Jeff Rogers, Malone's senior vice president, tells GlobeSt.com that Dallas-based Madison Residential spent one year getting 16 acres zoned for multifamily as a prelude to a sale. "We were caught off guard when they said they had a tract of land that they had rezoned multifamily in DeSoto," he says. "We knew that the city, several years ago, had down-zoned all of the multifamily land to other uses." The explanation was made as to how the feat was accomplished and, he confides, "at that point, we knew we had a deal that we could close."

Donald L. "Bud" Hudgins, president of the Hudgins Cos., is the man behind the developer of record, DeSoto Apartments Ltd. He is well known in Dallas-Fort Worth development circles as a builder of single-family and multifamily product. In fact, he's bringing DeSoto Ranch out of the ground on the heels of his 240-unit Lost Spurs Ranch apartments, part of a 120-acre undertaking in the Alliance Corridor.

Beeler Guest Owens Architects LP of Dallas designed DeSoto Ranch. The 17-building complex will feature the usual amenities, including a business center, that residents these days put at the top of their list in selecting a complex to call home. Units will boast built-in computer desk/study niches as well as garden tubs. The general contractor is Texas BBL LP, an entity of Albany, NY-based Barry, Bette & Led Duke Inc.

Finished product will rent for 89 cents per sf, translating to $675 per month for a 702-sf unit. The largest apartment totals 1,470 sf and carries a monthly rent of $1,345. The project site is along Polk Street, about a mile west of Interstate 35.