DALLAS-In a cost-saving move, the developer of a 22-year-old complex in North Dallas has secured a $9.2-million refinance from Prudential Mortgage Corp. The borrower, retiring conduit debt, ended up with an interest-rate savings of roughly 2%.

The Dallas-based limited partnership got a 10-year loan at interest-only payments at a fixed rate of 5.7% for the 361-unit McCallum Highlands Apartments, Hunter McGrath with locally based Quantum First Capital tells GlobeSt.com. The borrower developed the 6565 McCallum Blvd. property and recently renovated it.

McGrath tells GlobeSt.com that the new financing retired a conduit loan, bearing down on its maturity that was being serviced by Overland Park, KS-based Midland Loan Services Inc. The new vehicle at a 70% loan-to-value ratio went full circle in 75 days with the New Jersey-based Prudential coming out on top of a half dozen offers “for the surety of execution,” he says. “If I know my business, I don’t need to show it to more than that. It was a nice deal for everybody.”

McCallum Apartments is a gated class B asset with one- and two-bedroom units. “Basically, it’s full,” McGrath says. The average apartment is 604 sf. Monthly rents range from $425 to $810.

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