State Farm Investments provided the financing for the 97%-occupied multifamily complex. Gary Hough, principal with Houston's Kinghorn, Driver, Hough & Co. says, "A key attribute to this transaction was State Farm's ability to hold the rate at initial quote, even after a very significant run-up in Treasuries, before the application was signed." State Farm's rate is 6.5% for class A multifamily projects. The Fairmont loan is a 20-year term with a 20-year amortization.
In a prepared statement, Hough said the borrower was impressed with State Farm's willingness to work with him to reduce the paperwork involved with maintaining his previous HUD loan, capture equity in the project and offer a more attractive interest rate. State Farm loan typically handles loans ranging from $2.5 million to $50 million, with terms up to 20 years and amortization up to 30 years.
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