Tarragon Realty Secures $104M Mortgage Financing

NEW YORK CITY-Tarragon Realty Investors Inc., a real estate investor and developer of for-sale housing and rental communities based here, recently closed on a $104 million first mortgage pool financing with GE Real Estate, secured by seven apartment properties in Texas, Tennessee and Florida. The transaction is structured to allow flexibility in asset substitution, future increased fundings, revolving prepayments of up to $25 million as well as two one-year extensions beyond the initial three-year term of the facility, according to Tarragon. The publicly traded company controls approximately 16,000 apartments and 1.5 million sf of commercial space, valued at over $1 billion, with concentrations in Florida, Connecticut and Texas.

“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.