Vail Quarters Apartments Nails $23M Refinance

DALLAS-Crossing the finish line in roughly 60 days, Adam’s Rib Ltd. has replenished its till with a $22.61-million refinance of a construction loan for the 332-unit Vail Quarters Apartments in North Dallas. A traditional 70% to 80% loan-to-value ratio was used to lock down the new financing.

Eli Gershenson of Quantum First Capital LP in Dallas tells GlobeSt.com that the local developer replaced a Comerica loan, riding against the 3900 Briargrove Lane development, with a seven-year financing from Washington, DC-based Green Park Financial. He says the new lender’s note is an interest-only package with a sub-5.75% fixed-rate interest.

Gershenson says the borrower still had term left on the construction loan, but there was no reason to delay permanent financing with a Fannie Mae DUS loan since lease-up had gone so well. Within 10 months of delivery, the complex had hit 99% occupancy and has remained at that level, he adds. The 25-building Vail Quarters, sitting on 9.61 acres, was completed in 2007.

The one- and two-bedroom apartments, averaging 864 sf, go from 542 sf to 1,479 sf, some with attached garages. According to Internet research, the units are renting for $619 to $1,234 per month. The amenity package has two swimming pools plus all the bells and whistles like business and fitness centers as would be expected at a class A complex in North Dallas.

Gershenson says the permanent financing is flexible enough to allow for a sale if that is what the borrower wants to do. “That’s to be determined. They have the option of keeping it for the next seven years,” he says “or they can put it on the market with a low interest rate that’s interest only and assumable.”