Other - Debt

NorthMarq Capital

NorthMarq Capital’s Los Angeles office arranges $8.1 million construction loan for a 24 Hour Fitness in Arvada, Colorado

LOS ANGELES (August 11, 2017) John Marshall, vice president of NorthMarq Capital’s Los Angeles regional office, negotiated $8,100,000 construction financing for a 63,110 sq. ft. single-tenant 24 Hour Fitness located in Arvada, Colorado. The project’s total cost was $13,760,000 which included significant tenant improvement dollars and the installation of rooftop solar panels. The borrower, a Los Angeles based developer, engaged NorthMarq to find a construction-to-permanent loan to re-tenant a vacant grocery store with a new 24 Hour Fitness gym.

NorthMarq drew on existing banking relationships to find a six-year and three month (75 months total), fixed rate construction-to-permanent loan with minimal prepayment penalties, no deposit requirements, and minimal structure. The loan features a 5.12 percent interest rate and a 25-year amortization schedule, and did not require an interest rate swap.

“The non-credit tenant ruled out a number of lenders but the sponsor’s multiyear track record with the tenant and low acquisition basis made the deal attractive to multiple banks. Ultimately a regional bank offered the most flexibility, tailored the term to rent bumps on a 20-year lease, and allowed the sponsor to capitalize the significant cost of rooftop solar panels for additional proceeds,” said Marshall.

NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the U.S., provides debt, equity and commercial loan servicing through over 300 mortgage banking professionals in regional offices coast-to-coast and services a loan portfolio of more than $52 billion. In select markets, the company offers multifamily and manufactured housing investment sales through NorthMarq Multifamily. As a leader in capital solutions through long-term relationships with life companies, CMBS platforms and local, regional and national banks, the company also has a long track record of multifamily loan origination through Freddie Mac, Fannie Mae and FHA/HUD. For more information please visit www.northmarq.com.