Our Charlotte office offers a complete range of financing options for all types of commercial real estate. We can arrange commercial real estate loans for any property type through our unmatched network of lending partners. Call our local office to learn more.
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Highlights:
CHARLOTTE, NORTH CAROLINA (February 7, 2023) – Northmarq announces the promotion of David Vinson to managing director of its Charlotte/Raleigh debt and equity offices. Vinson will oversee the daily operations of the offices while continuing to serve Northmarq’s clients as an active deal team member arranging debt and equity financing.
Vinson joined Northmarq in 2013. He brings over 15 years of capital markets experience, during which he has completed more than $1.5 billion in transaction volume. Prior to joining Northmarq’s Raleigh office, Vinson spent seven years in Charlotte, North Carolina, working for Berkeley Capital Advisors and Wachovia/Wells Fargo. Vinson received his B.S. degree in Finance from the Walker College of Business at Appalachian State University.
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MINNEAPOLIS, MINNESOTA (September 27, 2022) — Northmarq’s Charlotte office has announced the addition of Grant Harris as vice president – debt/equity. Grant joined Northmarq in August of 2022 and will focus primarily on debt and equity placement for multifamily assets throughout the US.
Prior to joining Northmarq, Grant spent six years with CBRE where he facilitated in the procurement, execution, and closing of over $5 billion in financing across 175 transactions and 15 states. In his new role as vice president, Grant will be working with David Vinson and Faron Thompson, to develop new clients and support financing opportunities in the Southeast with focus on the Carolinas.
“We are very excited to have Grant join our team. His depth of knowledge and experience in multifamily finance will allow him to hit the ground running alongside our existing team and contribute immediately to our continued growth,” said Vinson.
Additionally, Grant will continue coordination with the investment sales professionals in the Charlotte office which include Andrea Howard, Allan Lynch, John Currin, and Caylor Mark.
“We are thrilled to have Grant join our Carolina based debt and equity team and look forward to leveraging his local expertise and further enhancing our debt capabilities for our clients in partnership with David Vinson in Raleigh and Faron Thompson in Atlanta,” said Howard.
Grant is a University of South Carolina graduate where he received a B.S. degree in Finance and Real Estate with a Minor in History.
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CHARLOTTE, NORTH CAROLINA (June 13, 2022) – As Charlotte continues to expand its economy and population, its multifamily market is reporting unprecedented levels of activity. The market has experienced a tremendous rebound from the artificial pandemic performance in terms of investor demand, in-migration and rent growth.
The market recorded double-digit rent growth in 2021, extremely tight vacancies across sub-markets, record lease-up velocity and a modest supply of new deliveries. All these signs clearly point to a landlord’s market, and investors have taken notice.
This year looks to be another solid one for Charlotte’s multifamily investment market, coming off a record-setting 2021 with nearly $6.4 billion in transactions (compared to $3.5 billion in 2020 and $3.7 billion in 2019).
So far in 2022, pricing remains strong and sales are a.head of the pace set at the start of last year ($1 billion in first-quarter 2022 vs. $566 million in first-quarter 2021 ).
Companies and residents are flocking to Charlotte, which is increasingly recognized as a high-growth market. It is business-friendly, offers a great lifestyle and is a talent magnet. Lowes, USAA and Centene are examples of companies expanding their footprints and hiring thousands of employees, all who need a place to live.
Moreover, these are high-paying jobs ($l00,000-plus), targeting a younger tech-enabled workforce, which bodes well for multifamily market fundamentals.
There is already significant pent-up demand from renters, and these companies’ expansions have not opened yet. Additionally, soaring housing prices have priced out many would-be homebuyers.
Transaction size increases
Investors are stepping up activity in Charlotte. Ten $100 million-plus transactions closed in 2021, and five such deals have already closed by April 2022.
More investment groups are viewing Charlotte as an institutional market, including pension funds, insurance companies, private equity and high-net worth-individuals. The market liquidity is at an all-time high.
Despite rising interest rates, deals are pushing through. Northmarq has had $1.7 billion of multifamily assets on the market throughout the Carolinas year-to-date. Many participants would have assumed the interest rate increase would have slowed activity; however, that was not necessarily the case. For prime assets in the best locations, Charlotte’s market fundamentals remain incredibly strong.
Northmarq was recently awarded an asset that had 15 offers, three rounds of bidding and was as competitive as before the run-up in interest rates. While interest rates are having a slight impact on pricing, the depth of the market of bidders remains robust.
For borrowers, the cost of capital has increased, but that is offset by accelerating rent growth. From a capital perspective, investors remain attracted to Charlotte and need to allocate their commercial real estate percentage in high-growth markets like the Queen City, which forecasts strong employment trends and accelerating rent growth for multifamily assets.
Fight to quality
In a sign of flight to quality among investors, nearly every asset was trading at roughly the same cap rate, whether it was value-add or a newly developed, core property.
It appears a return to normalization has occurred where value-add is now showing a risk premium relative to newly built core assets. The interest rates have had the least impact at the top of the quality spectrum, and the impact is greater among the deeper, value-add assets.
For core assets, cap rates are in the mid- to high 3 percent range, which is above where it was 90 days ago by 25 or 30 basis points, which, remains an attractive price point. Because of the rent growth and asset appreciation occurring over the last several years, investors arc sitting on huge, embedded gains.
There is so much profit remaining in these assets that it will continue to drive the investment sales market. For example, Northmarq will soon launch the marketing of Novel LoSo Station, a trophy asset in Lower South End, a popular submarkct for young renters.
Northmarq expects very competitive bidding with institutional, all cash groups that arc less sensitive to rising interest rates. Accordingly, Northmarq remains bullish on investment demand in this flight-to-quality environment.
Who is lending?
Lenders are also focusing on flight to quality. We are still seeing immense demand for multifamily from our lenders, which have an abundance of capital to allocate. That means multiple options for borrowers as lenders are still competing to win business.
If 2021 was the year of the bridge lender, then 2022 is the year of the bank and balance sheet lender. Banks, life companies and the government sponsored enterprises (Freddie Mac and Fannie Mac) are seeking multifamily investments and, although the agencies have not been nearly as competitive in the last a year and a half, we arc starting to see them show up again and expect them to regain some market share.
While there remains uncertainty and the potential for interest rate increases throughout 2022, Charlotte is well-positioned as an attractive multifamily market for both investors and lenders.
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Demand was the prevailing theme in the Charlotte multifamily market in the third quarter. Renter demand caused vacancy to tighten and rents to spike, while investor demand is yielding rising prices and falling cap rates.Report identifies new markets, market drivers, and investment opportunities
MINNEAPOLIS (Oct. 15, 2021) – Northmarq, which is an industry leader in the growing build-to-rent market, has issued its Oct. 2021 special report, authored by the company’s national Build-to-Rent team and Research Director Pete O’Neil. Led by Jeff Erxleben, executive vice president/executive managing director, and Trevor Koskovich, president-Investment Sales, the group of 12 experts in debt, equity, and investment sales, has completed more than $1.5 billion in single-family built-to-rent sales transactions in the U.S. and has over 15 active listings and assignments.
“While this property type first appeared in Phoenix, we are now seeing activity across the country and built a team focused on the asset from start to finish. By combining financing and sales experts on the same team, we can provide the best insights to clients across the country,” said Koskovich.
As part of the specialty practice group’s responsibilities, they work with Northmarq’s Director of Research Pete O’Neil to compile a research report twice a year. The second half report, issued today, identifies three key trends:
Billions of dollars of debt and equity capital are moving into this investment class with new entrants on the scene seemingly monthly. Lenders recognize build-to-rent’s impressive fundamentals and are offering developers and investors new options for structuring their financing. What was a niche product in only a handful of markets a couple of years ago is spreading across some of the fastest-growing areas of the U.S., particularly the Southwest, Texas, and the Southeast.
Billions of dollars of debt and equity capital are charging into this investment class
MINNEAPOLIS, MINNESOTA (October 8, 2021) – Developers, investors, renters, and now lenders, are catching the wave of single-family build-to-rent, one of the hottest sectors in the U.S. multifamily housing market. Read the full report.
If build-to-rent isn’t in your market yet, it’s likely heading your way.
Northmarq is very active in this thriving space having launched in 2021 a National Build-to-Rent practice group comprised of dedicated debt, equity, and investment sales experts from across the country. Northmarq has already completed more than $1.5 billion in single-family home rental transactions in the U.S. and has over 15 active listings and assignments.
Billions of dollars of debt and equity capital are moving into this investment class with new entrants on the scene seemingly monthly. Lenders recognize build-to-rent’s impressive fundamentals and are offering developers and investors new options for structuring their financing. What was a niche product in only a handful of markets a couple of years ago is spreading across some of the fastest-growing areas of the U.S., particularly the Southwest, Texas, and the Southeast.
Strong demand from renters is fueling the expansion. Additionally, one of the biggest advancements of build-to-rent product is developers are creating purposeful neighborhoods of rental homes operated by the same multifamily management operator. This allows the owner to operate cost-efficiently when managing the rental and maintenance of the homes, which is more attractive to investors than portfolios of traditional single-family rentals that could be scattered across metros, submarkets, and regions.
Numerous debt financing options available for development, acquisitions
As build-to-rent velocity accelerates, investors and lenders are becoming more familiar and comfortable with the product. More and more traditional multifamily lenders are financing these properties. Lenders range from Freddie Mac, Fannie Mae, and life insurance companies, traditional banks, and private debt funds seeking to expand their portfolios. Debt providers are becoming wider and deeper as build-to-rent expands. Terms are attractive, with lenders willing to increase the loan-to-cost amounts at lower interest rates. Lender competition is heating up with lenders seeking to gain traction within the property type.
For acquisition and recapitalization, Fannie Mae and Freddie Mac are very active debt options in the space. Northmarq, as a direct Freddie and Fannie lender, is one of the largest direct agency lenders currently making these loans. We recently completed the sale of two projects with more than 500 units in Phoenix and simultaneously arranged acquisition financing through Northmarq’s Fannie Mae platform.
Equity pours into the sector
More than $10 billion in equity capital is expected to move into build-to-rent properties this year alone, after roughly a dozen institutions announced plans to expand into the sector. For example, Blackstone announced a $6 billion acquisition of Home Partners of America, and Invesco Real Estate partnered with Mynd Management, committing $5 billion to purchase 20,000 single-family homes.
Investor response has been robust. More than $900 million in build-to-rent transactions closed in 2020, up from $400 million in 2019. Transaction activity continues to accelerate in 2021. The number of properties that sold during the first half of was nearly identical to the total sold in all of 2020.
A strong second half is underway with several properties slated to close by year-end. Similar to conventional multifamily, pricing is pushing higher and cap rates have compressed. The median price surpassed $250,000 per unit in 2020, while the median price in transactions closed year to date exceeds $300,000 per unit. Robust investor demand and increasing rents are driving up pricing.
Why is build-to-rent popular with renters?
Build-to-rent provides renters new options fueled by its affordability, flexibility, and as an alternative to the tight housing market. Millennials are a big force behind the build-to-rent movement, as they move to the suburbs seeking more space, yet still opt to rent. They’re looking for modern amenities that new build-to-rent communities offer. Empty nesters are also attracted to this rental option. Hot markets include Phoenix; Texas, led by Dallas-Fort Worth and Austin; and the Southeast including Orlando and Tampa, Fla., Atlanta; and the Carolinas.
Dallas-Fort Worth and the Carolinas, in particular, are up-and-coming markets to watch. Buoyed by booming job markets, fast-growing populations, and increasing housing prices, Dallas-Fort Worth and North and South Carolina are becoming top spots for new build-to-rent communities.
The product is still in its early stages in Dallas-Fort Worth with approximately a dozen build-to-rent properties delivered since 2018. However, activity is accelerating rapidly, with another roughly 25 projects under construction or planned, totaling more than 3,100 units.
There are roughly 25 existing build-to-rent communities across the Carolinas with several more projects in the pipeline, which should deliver in the next few years. Thriving build-to-rent cities include Charlotte and Greenville, S.C., and Raleigh-Durham and Myrtle Beach, N.C.
Highlights:
Real Estate Forum has announced the 2021 recipients of its annual Women of Influence recognition, and Nancy Ferrell and Andrea Howard have been selected for the prestigious list. The organization plans to honor the chosen 2021 Women of Influence at their third annual GlobeSt. Women of Influence Awards Dinner, which will be held in Park City, Utah in July 2021. In addition, the Women of Influence will be profiled in GlobeSt. Real Estate Forum’s July/August issue, and will gain recognition on GlobeSt.com.
Nancy, regional managing director/managing director – debt & equity in
Baltimore, was promoted early in 2021 to NorthMarq’s Executive Committee. In that role, she co-leads the operations of the company’s 38 debt and equity locations, continues to co-management of the Baltimore office, and originates commercial mortgage debt and equity placements on behalf of clients, many of whom she has worked with for more than 30 years. She was also selected for the Women of Influence recognition in 2018, based upon her work in community mentoring and top-tier production volume across all property types.
According to Jeff Erxleben, executive vice president/executive managing director – debt & equity. “Nancy’s influence is particularly noticeable in her approach to collaboration and integrity. “She has an unmatched reputation among fellow teammates and clients for her team-oriented approach to business, and executing for her clients at the highest level – doing business the right way,” he said. “As a new member of the Executive Committee this year, she can speak to the lender side of our business, given her deep, long-term relationships with a large number of capital providers.”
“Nancy is one of the strongest loan producers in our company, with consistent production through her loyal clients make her a role model for anyone in our industry,” said Pat Minea, executive vice president/executive managing director – debt & equity.
In addition to her career-long production achievements, Nancy is also an active volunteer in the Baltimore community. She was a founding member of the NAIOPMD’s Community Service committee and remains an active member of NAIOP, CREW, and ICSC. She is a current trustee for The Bryn Mawr School, chair of the Building & Grounds Committee. Nancy was a long-term board member and past board president for the House of Ruth Maryland, a leading center for women and children of domestic violence, and also served as co-Commissioner for Towsontowne Girls Lacrosse Rec Council programs 2004-2009.
Andrea, who joined NorthMarq in February 2021, leads the Carolina’s Investment Sales team with Allan Lynch and Jeff Glenn. She is known as one of the top multifamily investment sales professionals in the Southeast. Her 10-person team, which is based in Charlotte and Raleigh, has transaction volume of more than $20 billion over the last five years.
“Andrea’s clients love her enthusiasm, professionalism, and innovation in marketing multifamily investment sales properties, most of which are the trophy asset in the submarket,” said Trevor Koskovich, president – Investment Sales at NorthMarq. “We were very excited to welcome Andrea and her team to NorthMarq, since they align with our business model of innovative brokers who fit our culture and can leverage our debt & equity business.”
Andrea’s passion in helping women in the CRE industry stems from her long-standing participation in softball – first as a collegiate player and now as a coach. “I’m passionate about helping lift up women in the real estate business, with a particular focus on mentoring through CREW. I think young women in this business start by building their confidence, which is why I also coach softball. Using sports to help teach young women from a young age that they can do anything they want builds confidence and teaches important life skills needed in business including time management, putting the team first, communication skills, and leadership.”
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MINNEAPOLIS, MINNESOTA (Feb. 4, 2021) – One of the top nationally ranked multifamily investment sales teams has joined NorthMarq’s Charlotte and Raleigh offices, bringing the company’s investment sales locations to 18. Andrea Howard, Jeff Glenn, John Currin, Allan Lynch, and Caylor Mark, previously with JLL, will market multifamily investment properties primarily in the Carolinas.
“We are incredibly excited to welcome Andrea, Jeff, Allan, John, and Caylor to NorthMarq, as they are well-known and highly regarded in institutional capital markets,” said Trevor Koskovich, president-NorthMarq’s Investment Sales business. “From inception, our business model was to find innovative brokers who fit our culture and could leverage our debt & equity business. We are confident the Carolina team will be an excellent addition to our platform, rounding out our coverage throughout the southern half of the U.S.”
The teammates were previously competitors, but in 2019 came together as one team, creating a market-leading powerhouse with more than $20 billion in combined transaction volume. Their experience encompasses investment sales of class A and B multifamily assets, land sales, and development advisory, where their experience in pre-stabilized space has dominated the Carolinas recently.
“What’s unique about us is the level of trust we’ve developed so quickly. That trust translates into great teamwork to support our clients. By aligning with NorthMarq’s growth, we can leverage that platform to benefit clients even more,” said Howard, managing director – investment sales, who brings her 20-plus years and more than $5.5 billion of multifamily investment transaction experience to the growing NorthMarq Investment Sales platform. She spent the first half of her career on the acquisition side of the business working for three different institutional investors.
Glenn will be managing director in Raleigh, where he will continue his more than 20-year career advising private, public and institutional investors in the disposition, acquisition and structuring of over $5.5 billion of large scale investment property. Lynch, also managing director, has nearly 20 years of experience and a diverse transaction history totaling more than $15 billion, which includes more than $7 billion in multifamily..
Currin spent over five years at JLL and was previously with two southeast development and acquisitions firms, having nearly $5 billion in transaction volume. Mark has eight years of multifamily investment sales experience with more than $5.4B of multi-housing transactions across the southeast, along with four years working in office and retail leasing. They join NorthMarq as senior vice president-investment sales. In business since 1960, NorthMarq has grown to more than 650 employees through more than 20 acquisitions, nearly $65 billion loan servicing portfolio and access to hundreds of capital sources, including Fannie Mae DUS, Freddie Mac, and FHA/HUD platforms and nearly 100 life company relationships.
Mark Ebersold, vice president in NorthMarq’s Charlotte-based regional office joined Lane O’Bryan, an expert in real estate financing, on Episode 9 of his podcast, Real Estate Investment Radio.
During the conversation, Mark used his extensive experience and industry outreach to give an overview of the landscape of financing sources, including Life Company, CMBS, agency lenders and non-bank lenders.
O’Bryan and Ebersold begin by discussing ins-and-outs of the often unknown and misunderstood option of Life Insurance loans and why this financing option is so attractive.
Topics covered include:
CHARLOTTE, NORTH CAROLINA (March 20, 2019) – NorthMarq announces the addition of Lawrence Larisma to its Charlotte-based regional office. In his new role as senior vice president, Larisma will assist local, regional and national multifamily, seniors housing and commercial real estate clients with financing for the entire capital stack, including debt, mezzanine and equity capital. He will leverage NorthMarq’s established relationships with institutional providers of capital, including Fannie Mae, Freddie Mac, FHA, Life Company, CMBS, REIT, bank and private debt, mezzanine and equity funds to create innovative financing solutions for his clients.
Since 1998, Larisma has originated and underwritten over $1 billion of construction, acquisition and refinance transactions on market-rate multifamily, affordable housing (HUD 202, HUD 236, Section 8, LIHTC), seniors housing (age-restricted, independent living, assisted living, memory care) and skilled nursing properties. His accomplishments include originating one of HUD’s largest multifamily construction loans and underwriting one of HUD’s largest skilled nursing facility refinances to date. He also originated among the first of several HUD 202 property refinances, as well as one of the first HUD 236/Section 8 decoupling transactions with a Fannie Mae DUS affordable loan.
“Lawrence’s leadership and depth of experience will create an immediate impact in our Charlotte office,” said Jeff Erxleben, executive vice president/regional managing director. “His track record of success, supplemented by NorthMarq’s nationwide platform, signals a positive outlook for current and future clients.
Prior to joining NorthMarq, Larisma served as director of originations at Love Funding Corporation, as well as a director at RED Capital Group in Charlotte. He was also founder and CEO of Reiles Capital Group, a capital advisory firm based in New York, as well as a senior originator and senior underwriter at Greystone & Co., a New York based real estate lending, investment and advisory firm.
”Lawrence is a great fit for our office,” said Bill Matone, senior vice president of NorthMarq’s Charlotte office. “With his extensive experience specializing in debt, mezzanine and equity capital for multifamily, senior housing and beyond, we expect Lawrence to hit the ground running.”
Larisma is a member of the National Multifamily Housing Council (NMHC), Urban Land Institute (ULI), American Seniors Housing Association (ASHA) and the National Investment Center for Seniors Housing and Care (NIC). Larisma graduated with a Bachelor of Business Administration (BBA) degree in International Business and Management from Schiller International University in London, Heidelberg and Paris. He is a certified HUD MAP & LEAN Underwriter for multifamily and seniors housing financing transactions.
Kevin Jenkins, vice president of NorthMarq Capital’s Charlotte regional office, was interviewed in an article titled “Coming Back Down to Earth,” featured in the September issue of Southeast Real Estate Business. The story investigates multifamily’s trajectory to notch its first annual decrease in sales volume in nearly a decade. Jenkins notes that the dip in volume has more to do with a lack of sellers than the inflexibility of investors.
Dave Stewart joined four other NorthMarq Capital producers to discuss and answer questions regarding tertiary and secondary markets. In his responses he noted that “Multifamily is of course the hot property type in Charlotte as well as growth areas of the southeast. Most news headlines are focused on the class “A”/Dog Wash/Rooftop pool/urban infill structures, but there is a huge market for class “B” and workforce housing in the areas surrounding major metropolitans. It is estimated that over 150 people are moving to the Charlotte MSA per day.” Read Dave’s responses below.
1. What property type/niche are seeing/hearing about in your market? What conditions make this possible?
Multifamily is of course the hot property type in Charlotte as well as growth areas of the southeast. Most news headlines are focused on the class “A”/Dog Wash/Rooftop pool/urban infill structures but there is a huge market for class “B” and workforce housing in the areas surrounding major metropolitans. It is estimated that over 150 people are moving to the Charlotte MSA per day. Not all can pay $2.00 PSF rents so they live in nice communities in the suburbs and commute. The values for these garden-style complexes has increased at a rapid pace in the past two-to-three years and their owners now have significant capital to deploy.
2. What type of borrowers/lenders are in your market? For example; is it primarily agency or are bank and life companies also part of the mix? Why?
Borrowers in our market are accustomed to bank loans. The personal guarantee is an annoyance but not always a deal killer. Banks have been our primary competition. Life companies seem to provide the sweet spot in terms of decent leverage, non-recourse and ease of execution so many are flocking to this financing type.
3. What are the unique challenges facing your market?
There have been some political decisions that have affected development projects but it doesn’t appear that it has bled into the acquisition side. There is some cause for concern with oversupply of apartments and office; and although the demand may lag for now, the economics will soon catch up.
4. What are the unique opportunities present in your market?
Those familiar with our market and have experience investing here know when and where to pick their spots. It is nice to reward clients that have been investing in this community for a long time with lenders who are actively seeking their deals. The Southeast, in particularly Charlotte, is a hot bed of activity and should continue to be for quite some time.
