Dealmaker: Paragon Mortgage Corp. Arranges $99M in Construction Financing

Paragon Mortgage Corp., Phoenix, closed $98.5 million in construction financing for multifamily assets in Arizona and Colorado.

In Marana, Ariz., Paragon closed on a $45.1 million 221(d)(4) loan to develop The Alexander Apartments.

The HUD-insured financing provided a combined construction and permanent loan for the market-rate multifamily property. The 40-year non-recourse loan closed at an 85 percent loan-to-cost ratio.

With 209 units, The Alexander Apartments will have one-, two- and three- bedroom floorplans with 12 attached and 53 detached garages and 190 covered carport spaces. Its sustainability features will include Energy Star-certified appliances, LED lighting and low-E fiberglass windows.

Paragon also provided a $53.4 million HUD 221(d)(4) loan for Eldorado Springs Apartments in Colorado Springs, Colo. The fully assumable non-recourse loan also closed at a 85 percent loan-to-cost ratio.

Eldorado Springs will be a three-story walk-up style property near shopping, restaurants and entertainment that will include green building design. Of its 236 units, 86 will be one-bedroom, 140 two-bedroom and 10 three-bedroom units.

“Eldorado Springs Apartments will meet the need for new multifamily housing in the growing but underserved area of southwest Colorado Springs,” said Kim Taynton, Vice President and Senior MAP Underwriter at Paragon Mortgage Corporation.