Multifamily

NorthMarq Capital’s Houston office arranges acquisition financing of $7.34 million for Regal Pointe

HOUSTON (April 4, 2017) – Warren Hitchcock, senior vice president/senior director of NorthMarq Capital’s Houston regional office, arranged acquisition financing of $7.34 million for Regal Pointe and an adjacent property totaling 152-units of class “B” multifamily located at 6111 Willowbend in Houston, Texas. The buildings had both been partially renovated, with good existing cash-flow and significant upside in rents remaining through improvements to the property interiors. The transaction was structured with a 5-year term with 3-years of interest only followed by a 25-year amortization schedule. NorthMarq arranged financing for the borrower through its correspondent relationship with a life insurance company. According to Hitchcock, the buyer was able to source the 12 unit property adjacent to the Regal Pointe property off-market. These larger unit sizes and rents added a tremendous amount of value to the bottom line without considerable expense.

“We were able to attract a number of lenders’ interest in the acquisition/bridge financing for the purchase and renovation of the two properties located just west of Meyerland,” said Hitchcock. “Ultimately, NorthMarq was able to originate a bridge loan with one of our correspondent life company lenders which has a strong national relationship with NorthMarq at a 75% Loan-to-Cost, low fixed rate of 4.75%, with future fundings for renovations, flexible prepay, on a non-recourse basis. The fact that a life company was comfortable financing this acquisition reposition is a testament to the sponsor and his business plans, a true win-win.”

NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the U.S., provides debt, equity and commercial loan servicing through its 36 offices across the U.S. The company has built long-term relationships with life companies, CMBS platforms and local, regional and national banks, with a long track record of multifamily loan origination through Freddie Mac, Fannie Mae and FHA/HUD. The company closes approximately $13 billion in commercial real estate loans annually and services a loan portfolio of more than $50 billion. For more information please visit www.northmarq.com.