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FORT WORTH-A San Antonio multifamily owner, with a thirst for class A properties, has stabilized and refinanced a local complex bought a year ago in a strategy that will be employed to ultimately take control of 1,500 units in Dallas-Fort Worth.

Internacional Realty Inc. replaced an assumed construction loan with $10.7 million in financing from MetLife. The five-year loan for the 216-unit Summer Brook Apartments at 7000 N. Beach St. was placed through MetLife’s Dallas office and came with a 3.68% interest rate.

“That’s the lowest that I have ever seen on a five-year, fixed-rate deal,” Frank Satterfield of Kinghorn, Driver, Hough & Co. in Houston tells GlobeSt.com. “It just happened to hit the market at the absolutely perfect time.”

Satterfield says the 3.68% was locked in the day before rates started to climb again. He credits MetLife loan closers Jeanne Burton and Greg Vinez with being able to meet the requirement to wrap up the financing, representing 80% loan to value, in less than 60 days.

Satterfield and the firm’s Matt Franke handle all financing for Internacional Realty, which has several more Dallas-Fort Worth properties under contract as part of a long-range goal to accrue 1,500 units in North Texas. Internacional Realty, led by Hugh L. Caraway Jr., scooped up the Summer Brook complex as construction wrapped up–the same strategy at work with the properties now under contract, according to Satterfield.

Internacional assumed a SouthTrust Bank construction loan held by Mady Development Corp., with offices in Dallas and Windsor and Toronto, Ontario, for a property that was just 50% leased. At refinancing time, the complex was 90% filled. “Part of the motivation for the purchase was to get a discount on the price…and take the leasing risk,” Satterfield says.

Summer Brook is a mix of one- and two-bedroom designs, some with dens. The rent averages 90 cents per month, the market rate for class A units in the immediate area, according to Satterfield.

Founded in 1994, Internacional Realty has amassed a class A portfolio that encompasses the Texas cities of San Antonio, Dallas-Fort Worth, Houston, Austin, Denton, McAllen and Wichita Falls and the Florida cities of Tampa, Port Richey and Clearwater as well as Stillwater, OK.

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