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McALLEN, TX-A prominent owner in the Rio Grande Valley has secured a $2.8-million permanent loan for a 37,841-sf, class A office building. The refinance will be used to retire a bank loan with a higher interest rate.

Jose Montalvo secured the capital for the fully leased White Summit Office Building at 3304 N. McCall Rd. from Boston-based CIBC World Markets. “Local banks have higher interest rates and can’t provide the kind of structure that we can,” says Hook Harmeling, a senior director with Dallas-based Metropolitan Capital Advisors Ltd. The loan originator says the 10-year, non-recourse package, with a 65% loan to value, closed with a rate that’s 100 basis points over the 10-year Treasury.

The four-year-old building’s lead tenant is the Social Security Administration, which holds a long-term lease for 20,201 sf. “This is a sweetheart deal–it has a government lease, a strong market and great sponsorship,” Harmeling tells GlobeSt.com. “It was very well-received in the market.”

The deal is the second one between Metropolitan Capital Advisors and Montalvo. “There’s a lot of stuff going on in the Valley,” Harmeling says, “and a lot of New York lenders are coming into the market.”

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