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DALLAS-Tarragon Corp. has replaced a floating-rate bank loan on the cusp of expiring with 10-year, fixed-rate financing for a 296-unit asset in North Dallas. The new $8.16-million note, which has passed to Freddie Mac, was cleared with an 80% loan-to-value ratio.

“We undertook a $2-plus million renovation and other expenses with a bank loan. It was coming due,” Todd C. Minor, executive vice president and treasurer for the New York City-based Tarragon, tells GlobeSt.com. “With long-term rates being so low, it made sense to put permanent debt on that property.” Tarragon has owned Aventerra Apartments at 11661 Dennis Rd. since the 1980s.

Gerry Nanos, loan officer in the Princeton, NJ office of Calabasas Hills, CA-based ARCS Commercial Mortgage Co., says the refi equated to “a plain vanilla transaction” with no major hurdles to clear. “It has good solid cash flow,” he explains, citing Aventerra’s 96% occupancy supporting the income stream.

According to ARCS, the 10-year loan, with a 30-year amortization, has a 5.75% interest rate. The first three years are interest-only payments.

The 34-building complex was developed in 1974 on an 8.6-acre tract near Interstate 635 at the junction of Josey and Forest lanes. The townhouse-style units range from 470-sf efficiencies up to 990-sf two bedroom-units, with monthly rents of $460 to $630.

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