"The time was right," explains William Friedman, Tarragon president. "And the rates are so low now. The properties involved have reached stability and occupancy."

In addition to the flexibility of the agreement, Friedman notes, the transaction reduces the weighted average interest rate on the seven properties covered by 81 basis points, resulting in annual savings of $777,000 to Tarragon, as compared to the cost of the floating rate project loans paid off with the facility.

"We are still in a position to sell or convert to condominiums any of the communities securing this facility without penalty or exit fee," Friedman adds. "With an initial interest rate of approximately three percent, this financing gives us the combination of low cost, complete flexibility and substantial proceeds that we were looking for."