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Financing Clears for Interurban Building's $28M Makeover

DALLAS-Merriman Associates is ready to push full throttle on the redevelopment of the historic Interurban Building into a class A high-rise with 134 lofts. Malone Mortgage antes up $18.2 million in construction and perm money to go along with city funding.

By Jennifer D. Duell | Updated on December 23, 2004

DALLAS-Local developer Merriman Associates has secured financing for the $28-million conversion of the historic Interurban Building, which served as the terminal for North Texas’ vast electric railway system, into a class A, residential high-rise.

Merriman Associates’ principals Chip Johnson, Craig MacKenzie and Randy Rost mined several financing sources, including a $5 million TIF grant from the city and $3.3 million in federal historic tax credits, says Bernard P. “Bud” Malone, president of Malone Mortgage Co. “This was a complex transaction,” he says.

Dallas-based Malone Mortgage provided $18.2 million in construction and permanent financing for the Interurban project through HUD’s 220 full-insurance Multifamily Accelerated Processing program. The 40-year loan fully amortizes over the term. Malone tells GlobeSt.com that the 18-month construction loan has an interest rate of 5.75%, which rolls into a 5.5% permanent loan. In addition to the first mortgage, Merriman Associates obtained a $1.5-million mezzanine loan from New York City-based New York Life Insurance Co.

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