Merriman Associates' principals Chip Johnson, Craig MacKenzieand Randy Rost mined several financing sources, including a $5million TIF grant from the city and $3.3 million in federalhistoric tax credits, says Bernard P. "Bud" Malone, president ofMalone Mortgage Co. "This was a complex transaction," he says.

Dallas-based Malone Mortgage provided $18.2 million inconstruction and permanent financing for the Interurban projectthrough HUD's 220 full-insurance Multifamily Accelerated Processingprogram. The 40-year loan fully amortizes over the term. Malonetells GlobeSt.com that the 18-month construction loan has aninterest rate of 5.75%, which rolls into a 5.5% permanent loan. Inaddition to the first mortgage, Merriman Associates obtained a$1.5-million mezzanine loan from New York City-based New York LifeInsurance Co.

Located at 1500 Jackson St. in Dallas' CBD, the 165,000-sfInterurban Building was built in 1916. The redevelopment calls fora ninth floor to be added to the building so it can be outfittedwith 134 lofts, ranging from 669 sf to 1,638 sf. The average unitwill be 827 sf. Rents will range from $700 to $1,700 per month. Theproject also will include a six-level parking garage with 450spaces and a 20,000-sf, full-service grocery store. Constructionbegan a month ago. Units will start to turn in September 2005.