Our L.A. office provides a complete range of options for all types of commercial real estate financing. We can arrange commercial mortgages for any type of commercial property through our unmatched network of lending partners. In addition, we offer investment sales for multifamily and manufactured housing properties. Call our local office to learn more.
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LOS ANGELES, CALIFORNIA (November 2, 2022) – Ronnie Givargis, investment sales broker in Northmarq’s Los Angeles office, was recently highlighted in a Los Angeles Times story titled, “California’s Gas-Car Phaseout Brings Turmoil to Mom-and-Pop Gas Stations.” The article delves into the impact of the landmark requirement from the California Air Resources Board to require that all new automobiles and light trucks sold in the state be zero emission by 2035.
While current independent gas station owners may not be immediately impacted, as the deadline gets closer many analysts foresee a significant number of closures. One prediction sited by the Times estimated that nearly half of the states 5,081 mom-and-pop gas stations would permanently shut their doors by 2035.
But there is a saving grace for gas station owners: their highly desirable locations. Givargis noted that there is a strong demand for these sites, a large swath of which are “located on irreplaceable corners.”
“If your site is located in a desirable area, re-purposing the property will be simple and profitable,” he added, noting that such parcels could be ideal for drive-through restaurants, banks, and high-volume retailers.
Givargis credited the 2035 mandate as the catalyst behind “individual owners wanting to sell their stations now more than in the past.” But before many gas stations can be repurposed, remediation to clean up the site and make it habitable for future business may be required.
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MINNEAPOLIS, MINNESOTA (May 23, 2022) — Northmarq’s Investment Sales platform continues to grow, with two experienced brokers joining five multifamily brokers in the Los Angeles office. Senior Vice President Mike Hanassab and Senior Vice President Elliot Hassan come to Northmarq from James Capital Advisors along with Associate Broker Sam Krutonog. Northmarq now has five offices in the Southern California area: Los Angeles, Westlake, El Segundo, Newport, and San Diego.
Hanassab and Hassan, who both started in the industry in 2004, advise clients in the disposition and acquisition of multifamily properties in Southern California and have extensive knowledge of mid-market and institutional-quality multifamily assets. Having closed more than $3 billion in multifamily sales, the team has represented many different investors ranging from private parties to publicly traded REITs.
“With the total number of brokers now at seven in our Los Angeles office, we continue to improve our capacity to serve clients within our region,” said Trevor Koskovich, president – Investment Sales. “Mike and Elliot exemplify the things we prioritize on our team: long-standing quality relationships with a variety of investors and proven experience in the Greater Los Angeles and Southern California markets.”
Hanassab, who has specialized in the San Fernando Valley, advises clients on their real estate investment goals through aggressive underwriting, strategic marketing, and navigation of the 1031 exchange process. Hassan has focused on mid to large apartment properties throughout Los Angeles County and works with clients to create strategies that maximize value during the transaction process. Both are native Southern California residents.
Northmarq’s Investment Sales platform sold more than 300 properties in 2021 totaling over $11.7 billion and has with a robust pipeline of more than 270 properties valued at $9 billion. See the company’s listings: https://listings.northmarq.com/
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LOS ANGELES, CALIFORNIA (March 28, 2022) — Zalmi Klyne has been promoted to managing director – debt & equity in Northmarq ’s Los Angeles office in recognition of his leadership and increasing financing production. Klyne joined Northmarq in 2020, and since then has doubled his debt & equity production, leading to nearly $1 billion in transaction volume.
Klyne will co-lead the Los Angeles office with Ory Schwartz, the office’s long-time managing director. The office has four debt & equity experts who partner with the firm’s Investment Sales team. During his first year at Northmarq, Klyne was recognized as the Newcomer of the year and was selected to be on Northmarq Producer’s Council.
“Zalmi brings a dedicated work ethic and continues to add value to our office and clients,” said Schwartz. “He is an innovative, collaborative partner for me and the other producers in the office.”
Klyne specializes in working with family offices/high-net worth individuals, syndications, and private investors, where he structures financing for all property types with all lender types. Since joining Northmarq, he has arranged more than 100 transactions valued at nearly $1 billion.
Prior to Northmarq, Zalmi served as an executive vice president at Continental Partners, a Los Angeles-based independent brokerage firm.
Zalmi is an experienced businessman whose foundation and strong sales skills were refined across states and countries: Florida, New York and Melbourne, Australia. Also, before Zalmi joined Continental Partners he was a founding partner at a successful holiday start-up where he found his entrepreneurial drive, which continues to serve him today.
Zalmi attained his Rabbinic Ordination from the Rabbinical College of Jerusalem and is now in a non-practicing role as he continues to mentor and counsel both students and adults in the Faith. He is a licensed Real Estate salesperson in the state of California.
Brent Sprenkle joins as Managing Director
MINNEAPOLIS (March 21, 2022) — Northmarq’s Investment Sales platform continues to grow, adding a fifth location in El Segundo, California led by Brent Sprenkle, a two-decade multifamily expert with more than $2 billion in multifamily sales who joins Northmarq as managing director.
Sprenkle, formerly with Berkadia, will continue his focus on selling multifamily properties and advising clients on investments in the Greater Los Angeles area. He specializes in reviewing private capital and institutional investors’ portfolios to help achieve their objectives of expansion, consolidation, disposition and exchanges and will add a team of brokers and transaction professionals in the coming weeks.
“We see such potential for our platform in Southern California and continue to add new professionals who are collaborative, entrepreneurial, and a good cultural fit,” said Trevor Koskovich, president – Investment Sales. “Brent brings those characteristics, along with a strong track record with private and institutional clients. We’re excited to have him join our growing coverage in the Greater LA and Southern California markets.”
Sprenkle has also authored a best-selling business book to help new investors, called Billion Dollar Portfolio: How to Create a Real Estate Empire.
MHC team joins in SoCal, new brokers expand Austin team
MINNEAPOLIS, MINNESOTA (January 11, 2022) — Northmarq continues to grow its investment sales platform, adding a new Manufactured Housing team in Southern California and three new multifamily brokers in Austin. In the last three years, the company’s IS platform has grown from its Southwest roots to national coverage, comprising more than 100 professionals, and facilitating nearly $18 billion of real estate activity.
The Manufactured Housing team — comprised of Managing Director Jeff Benson, Senior Vice President Sam Neumark, Associate Brokers Kody Scott and Jerimiah Robinson, and Transaction Manager Meg Carter — join Northmarq from Marcus & Millichap. They worked together representing buyers and sellers of manufactured housing communities in this important niche, with more than $2 billion in closed transactions and more than 20 years of previous experience. Benson and Neumark are industry leaders in the manufactured housing market and will bring national coverage by collaborating with the existing Northmarq MHC team of Don Vedeen, Jared Bosch, and Chris Michl, who are based in Phoenix.
“Now that we’ve covered the U.S. in institutional and private capital multi-housing property sales experts, we wanted to build out our expertise in a few niche areas. We added an affordable team last year, and now expand our focus on manufactured housing communities with Jeff Benson and his team, who will collaborate with our existing MHC team in Phoenix to offer national coverage for investors,” said Trevor Koskovich, president – Investment Sales. “As in Austin, we continue to add depth to teams across the country.”
In Austin, three senior associates — Hayden Schnieders, Jordan Vaughn, Will Collier — come to Northmarq from Matthews Real Estate, and join Managing Director Scott Lamontagne’s team, adding depth to his focus on land, Build-to-Rent communities, and market-rate multifamily.
“Hayden, Will, and Jordan bring experience in the Austin and surrounding tertiary markets as well as expertise in the value-add segment and infill properties. With Austin’s incredible economic engine, there is a huge demand for both value-add property acquisitions and infill redevelopment sites. Many of the relationships that these gentlemen bring to NorthMarq will now be able to benefit from the increased value that can be derived from viewing their assets using both of these unique lenses,” said Lamontagne.
Northmarq’s Investment Sales platform sold more than 300 properties in 2021 totaling over $11.7 billion and starts 2022 with a robust pipeline of more than 200 properties valued at $6.3 billion. See the company’s listings: https://listings.northmarq.com/
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The five additional investment professionals represent the 20th IS team in 40 months
MINNEAPOLIS, MINNESOTA (August 4, 2021) – A five-person, high-profile multifamily investment sales team has joined NorthMarq in the Los Angeles area. Vince Norris, Jim Fisher, and Mike Smith come to NorthMarq from Berkadia, bringing decades of experience advising multifamily and land investors in the Los Angeles MSA and throughout Southern California. They will be joined by two senior financial analysts and are the 20th new IS team to join the company in 40 months.
“We couldn’t be happier to have this team of seasoned professionals, who are a perfect cultural fit for NorthMarq. Not only are they top brokers in their markets with many similar clients, they also are innovative, collaborative, and operate with integrity,” said Trevor Koskovich, president – Investment Sales. “The addition of this team rounds out our extremely strong platform in the southern California markets – from San Diego up to Los Angeles – bringing us to more than 20 professionals proficient in all areas of multifamily properties.”
Norris, Fisher, and Smith, who will be managing directors in the Los Angeles office, said they were attracted to the company by the flat management and the success and growth of the investment sales business. They will work closely with Bryan Schellinger, managing director – Investment Sales in the Los Angeles office, who came to NorthMarq in 2020. According to Koskovich, in addition to their multifamily advisory expertise, they are also strong leaders who will mentor an up-and-coming broker as part of the company’s Associate Broker program. NorthMarq’s Associate Broker and Associate Producer programs are industry-leading mentoring and training programs designed to help emerging talent become successful client-facing professionals. NorthMarq is recruiting candidates for the Associate Broker program in Los Angeles, Phoenix, Charlotte, and Dallas.
“NorthMarq represents an entrepreneurial platform with tremendous growth potential. We were attracted to Trevor’s leadership, since he is a player/coach who understands the needs of clients and the IS team members. We are also excited to help the company build the next generation of talent,” said Norris.
The team, which has private, sponsored and institutional capital clients, focuses on existing properties, portfolios and land, within all aspects of the multifamily space including market-rate, senior, and affordable properties. Senior financial analysts Trina Pitts and Brandon Norris round out the team.
“We have a long-track record collaborating with strong mortgage bankers, which we think offers clients a well-rounded approach that best fits their needs. NorthMarq’s mortgage bankers are well-known in the industry, and will be critical partners as we build our business,” Smith said.
One of the team strengths is sourcing “off-market” transactions, which are an easy place to collaborate when the client already exists on the mortgage banking/financing, according to Fisher.
In June, John Nguyen and Jesse Elsanhuty, an affordable housing team, joined the company in southern California.
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LOS ANGELES, CALIFORNIA (April 1, 2021) – The Los Angeles office of NorthMarq announced the promotion of Zalmi Klyne to senior vice president. Klyne possesses more than eight years of commercial real estate experience. Since joining NorthMarq in 2020 he has been a part of arranging and closing more than $200 million in financing for multifamily, industrial, office, and retail properties In his new role, Klyne will continue to originate debt and equity by leveraging NorthMarq’s relationships with Fannie Mae, Freddie Mac, HUD, correspondent life insurance companies, banks/credit unions, CMBS lenders, and a variety of equity sources.
“Zalmi has been a natural fit for our team, and hit the ground running at NorthMarq,” said Ory Schwartz, senior vice president/managing director. “During his first year at NorthMarq, he was awarded with the Newcomer of the Year award and was also selected to be on the NorthMarq Producer’s Council. We look forward to our clients benefiting from Zalmi’s expertise and industry knowledge.”
Prior to NorthMarq, Klyne served as an Executive Vice President at Continental Partners, a Los Angeles-based independent brokerage shop.
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Kane will work in two Southern California offices – Los Angeles and Newport Beach
LOS ANGELES, CALIFORNIA (December 9, 2020) — Alex Kane has joined NorthMarq as vice president in its Los Angeles office. In his role, he will be responsible for the origination of debt/equity across all major asset classes working from both the Los Angeles and Newport Beach offices. He has more than 10 years of commercial real estate finance experience, successfully closing in excess of $2 billion in commercial real estate transactions.
“Alex is a seasoned producer with a strong client base and will be a part of both the Los Angeles and Newport Beach offices’ growth plans,” said Michael Elmore, executive vice president/managing director of NorthMarq’s Newport Beach office.
Prior to joining NorthMarq, Kane was a director in the Capital Markets Finance Group for JLL’s Los Angeles office. Before this, he was a senior associate in the Los Angeles office of CBRE, part of their Debt and Structured Finance Group. Kane also previously held positions at Jupiter Holdings LLC and Lyon Living, both headquartered in Newport Beach.
“I’m excited to join NorthMarq and help contribute to the ongoing success and growth of the Los Angeles and Newport Beach offices. More importantly, I look forward to continuing to provide my clients with premium service by leveraging NorthMarq’s industry-leading platform,” said Kane.
Kane received his B.A. from the University of Colorado at Boulder. He is a member of the NAIOP, Urban Land Institute and Mortgage Bankers Association.
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LOS ANGELES, CALIFORNIA (March 31, 2020) – NorthMarq’s Los Angeles office bolstered its investment sales team with the addition of Amir Araghi as Vice President of Investment Sales. His responsibilities will include assisting with the development and growth of the multifamily platform. He will join Bryan Schellinger, managing director, Steven Goldstein, associate vice president and Jake Ctvrtlik in the investment operation.
“Amir adds tremendous value to our team given his unmatched market knowledge, extensive relationship with high-net worth and Institutional capital sources, and diverse transactional experience throughout Los Angeles,” said Schellinger.
Having grown-up in Los Angeles, Araghi benefits from a first-hand knowledge in acquisition and disposition of various property types including multifamily, office and industrial. This diverse skill-set ensures his clients receive a high level of focus, diligence and professionalism. During his career, Araghi has completed over $800 million in transactions.
“I am extremely excited to join the NorthMarq Los Angeles team. The opportunity that is present here for myself and the team is tremendous,” said Araghi. “With the rapid market shift, Bryan, Steven and myself will be harmonizing our extensive networks to bring unique opportunities and drive value for our clients.”
Below is a highlighted list of Araghi’s transactions:
Before joining NorthMarq, Araghi served as Director of the West Los Angeles office of Newmark Knight-Frank. The company recognized him as a Rising Star during his tenure. Araghi received his Bachelor of Arts in Economics and a Minor in Management at the University of California, Irvine.
I would first like to wish everyone health and safety during this time. It is difficult to cope with the health aspect of this situation on its own, but adding the economic challenge that everyone is facing makes it that much more difficult. Everyone is in the same boat, and I hope that we can all support each other to get through this together.
The current capital markets situation is evolving quickly. I had written a piece about 10 days ago, and candidly it is, for the most part, irrelevant at this time. What I am writing now reflects real-time information as of March 23.
Last month, the 10-year Treasury hit record lows when it dropped from 1.30% to below 1.00% and then all the way down to 0.32%—an all-time low. To put this in perspective, the lowest 10-year recorded was in 2016 at 1.32%; in 2008 during the financial crisis, the low was 2.15%. While the Treasury seemed to have recovered to a yield over 1.00%, it is now down to around 0.75%.
For the past 4-8 weeks it was a great time to lock in interest rates on fixed-rate loans. Low Treasury and low spreads were plentiful. However, for the past couple of weeks, certain capital has frozen up with some lenders hitting the pause button and some raising their mortgage rates to reflect their perception of risk.
Some lenders have still been actively signing up deals, particularly the GSEs for multifamily properties. Other lenders are also saying it is business as usual, but I believe this is based on their expectation that things will start to normalize in the next month or so, not based on what is happening presently. The challenge/unknown will be with how the properties are operating at the time that the loan is ready to fund. Because of municipal ordinances prohibiting landlords from evicting tenants, it is expected that many tenants will not be paying their rent in April due to lack of funds from lost jobs. Conversely, landlords will also face challenges in paying their mortgages due to a lack of NOI.
I believe that new business will start to slow down in the coming days/weeks as the focus shifts to preservation.
At NorthMarq, we are at the forefront of changes that are taking place in the market, both on new business and keeping abreast of the various government policy changes. We are in constant communication with lenders and believe that an industry-wide solution will emerge to address the impacts of COVID-19 and the effect it is having on the economy.
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Teams join existing Debt and Equity offices in coast-to-coast
platform expansion
MINNEAPOLIS (JAN. 16, 2020) – NorthMarq continues its expansion of Investment Sales with new teams joining existing NorthMarq debt and equity offices in Los Angeles and central Florida. With these two additions, the company’s investment sales platform extends across the U.S., covering nine offices in eight states.
“Our goal when we started this business was to offer investment sales coast-to-coast; the additions in Southern California and Florida truly achieve that for us. We look to continue this business expansion as we move through 2020,” said Jeffrey Weidell, chief executive officer, NorthMarq. “We are pleased that our new business is bringing added value to new and existing clients.”
The company’s investment sales business started in April 2018 when Trevor Koskovich joined the company as president of Investment Sales, and integrated his team with the existing Phoenix office. He is responsible for recruiting additional investment sales professionals to the platform.
“Each new office brings a new level of success to clients and our company,” said Koskovich. “The synergy among the professionals has been remarkable and is a testament to our plan to ensure a cultural fit with our new recruits.”
The two new teams bring seasoned veterans in commercial real estate, capital markets, and advisory services.
NorthMarq’s nine investment sales offices stretch from Southern California to the East Coast.
Debt & Equity, Investment Sales Office Opens
MINNEAPOLIS (JAN. 15, 2020) – NorthMarq continues its expansion in the Los Angeles area with the addition of two investment sales brokers and one mortgage banking professional this week, following the December 2019 opening of the Los Angeles office. This is the second LA-area office for NorthMarq, which has operated a Newport Beach office for nearly 20 years.
“The success we’ve seen with the addition of Investment Sales in Newport Beach has been a roadmap for our other Southern California markets. This new office will broaden our support of CRE clients across San Diego, Newport Beach and Los Angeles,” said Jeffrey Weidell, NorthMarq’s CEO.
Bryan Schellinger joins the company as managing director-Investment Sales, bringing nearly 10 years of investment sales with $1 billion in transaction history, most recently with Marcus & Millichap. Steven Goldstein, associate vice president-Investment Sales, also joins NorthMarq from Marcus & Millichap. Over the past 24 months, the duo has collaborated on over $200 million in sales volume throughout Los Angeles.
Ory Schwartz, with NorthMarq since 2001 and Newport Beach managing director since 2013, has spearheaded the Los Angeles office expansion as the new office’s managing director – debt and equity. He has added experience to the debt and equity business with the addition of Zalmi Klyne, who brings more than six years of experience from Continental Partners. Klyne has arranged more than $500 million in debt financing with various sources in the last three years.
“Strategically, the NorthMarq platform is a great fit for our team, and we’re excited to join a growing platform of likeminded professionals who shared our collaborative vision,” said Schellinger. “We know that our clients will benefit from the collaborative approach with the other investment sales offices and we’re equally excited to leverage NorthMarq’s debt and equity platform.”
Shane Shafer, managing director-Investment Sales, Newport Beach, leads the Investment Sales business in Southern California. “We are very excited to have Bryan and Steven join our investment sales team. Their relationships and expertise in the LA market will add to our growing platform in Southern California and will continue to provide our clients with even better access to opportunities in the Southern California multifamily market.
The Los Angeles office is located at 8750 Wilshire Boulevard, Suite 225, Beverly Hills, California.
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LOS ANGELES, CALIFORNIA (May 2, 2019) – NorthMarq’s Los Angeles office welcomed Scott Botsford to its production team. In his new role as vice president, Botsford will specialize in commercial and multifamily real estate finance and capital advisory services. He has the ability to service his client’s various financing strategies, through NorthMarq’s preferred life insurance correspondents, Wall Street conduits, Fannie Mae, Freddie Mac, HUD, debt funds, banks, credit unions and other prominent lenders.
“We are excited to have Scott as part of the team, he has a proven track record and fully understands real estate finance. Whether meeting the demands of our Orange County clientele or assisting with regional and national-wide financing, he will be a great addition to our office,” said Michael Elmore, executive vice president/managing director.
Botsford has been active in the commercial real estate capital markets industry for more than 10 years. Prior to joining NorthMarq, he worked for a regional mortgage banking company, specializing in structured finance. Before his mortgage banking experience, Botsford served as the Director of Acquisitions & Finance for an institutional real estate investment company.
“Scott’s prior experience makes him a perfect fit for our company and office. With the extensive platform that NorthMarq offers, we are looking forward to Scott growing his business and providing his existing clients and future clients with the full array of financing options,” said Ory Schwartz, senior vice president/managing director of NorthMarq’s Los Angeles office.
He is a licensed Real Estate Broker in the State of California and holds a Bachelor degree in Public Policy, Management and Planning from the University of Southern California.
CoStar recently announced its 2018 Power Broker Awards, celebrating the top CRE firms and brokers in the United States. NorthMarq’s Shane Shafer, managing director of NorthMarq’s Los Angeles office and Taylor Snoddy, managing director of NorthMarq’s Dallas office were recognized as Top Sales Broker in their markets. NorthMarq’s Phoenix and Dallas offices each earned a place in the ranks of Top Sales Firms in their markets.
Shafer and Snoddy were recognized for achieving high levels of sales transaction volume in their regions. The Top Sales Broker award distinguishes individuals based on the CoStar market in which the individual is located and is calculated using pricing information from closed sales transactions contained in CoStar’s COMPS database.
The Phoenix and Dallas offices were listed due to their high levels of sales transaction volume in 2018. The Top Sales Firm award is bestowed upon recipients based on the CoStar market in which the company is located and is calculated using pricing information from closed sales transactions contained in CoStar’s COMPS database.
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Shane Shafer, investment sales professional and managing director in NorthMarq’s Los Angeles office, was recently featured in GlobeSt.com’s article titled, “The Inland Empire Climbs to the Top of the Investment Lists.” The article notes how the Inland Empire is becoming the next frontier for multifamily investors looking for opportunities in the Southern California market.
Report shows healthy job creation pushes vacancy lower
NEWPORT BEACH, CALIFORNIA (JAN. 17, 2019) – NorthMarq’s Investment Sales group has published its first market research report for the Orange County and Inland Empire multifamily submarkets, offering in-depth research and on-the-ground expertise about multifamily market conditions and trends. The company continues to grow its multifamily investment sales platform and added the southern California market in October 2018.
“Service to our clients is one of our core beliefs. This research gives our clients the insight and trends to provide them with actionable information that can help guide their investment activity in the Southern California submarkets,” said Shane Shafer, managing director – NorthMarq’s Investment Sales team in Southern California. “We believe in providing the best information to help navigate and find the best opportunities in the market.”
“The report released today shows that employment gains have kept apartment demand strong with low vacancy and continued construction activity, where 2,600 apartments were delivered in the third quarter in Orange County. Inland Empire continues to see low vacancy and rising rents as the submarket absorbs existing units,” said Pete O’Neil, director of research, NorthMarq Multifamily.
Orange County Key Findings: Employment Gains Driving Rental Demand, Low Vacancy Rates
Download the Orange County report
Inland Empire Key Findings: Consistently Low Vacancy, Steady Demand Pushing Rents Higher
LOS ANGELES, CALIFORNIA (January 15, 2018) – The Los Angeles regional office of NorthMarq announces the promotion of Joe Giordani to senior vice president. In his new role, Giordani will continue collaborations with managing directors Michael Elmore and Ory Schwartz as the office assists clients in fulfilling their commercial and multifamily capital needs by offering debt and equity solutions through NorthMarq’s preferred life insurance correspondents, Fannie Mae, Freddie Mac, HUD, Wall Street conduits, pension funds, debt funds, banks, credit unions and other prominent capital sources. He has a proven track record of assisting clients with the entire capital stack for a deal, including equity, preferred equity, mezzanine debt, bridge debt and permanent first mortgages.
“Joe has been a leader in our office since he joined nearly five years ago,” said Schwartz. “His drive to provide the best possible solutions to our clients while establishing long-term relationships made this promotion a long-time-coming.”
Giordani joined the Los Angeles office of NorthMarq in 2014 and was honored as the “Rookie of the Year” nationally for NorthMarq in 2015. Giordani is also a member of the company’s national Producer’s Council in 2019.
Giordani has been involved in the commercial real estate industry since 2004. He began his career with Cushman & Wakefield in New York City and later transitioned to CBRE in San Francisco. After more than 10 years away, Giordani relocated back to Southern California to raise his family in his hometown of Newport Beach.
Beyond his strong production figures year after year, NorthMarq benefits from Giordani’s thought leadership and contributions to local, regional and national CRE publications. Recent examples include: Western Real Estate Business: Market Highlights; GlobeSt.com: Lenders are Vying for Office Redevelopment Deals; MBA Dealmaker: Deal of the Week.
“As NorthMarq continues to expand its new producer and associate producer programs, Joe represents a perfect exemplar of what our team and clients need,” said Elmore. “He is knowledgeable of the market, hard-working and well-liked by his clients, capital providers and our team.”
Giordani is a graduate of the NAIOP Young Professionals Group and an active member of NAIOP Southern California. He is a licensed Real Estate Broker in the State of California and holds a Bachelor degree in Economics from the University of Colorado at Boulder with a minor in Business.
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The Inland Empire multifamily market continued to post steady performance in the third quarter. The market is highlighted by low vacancy and rising rents. Looking ahead, apartment construction should accelerate, although employment growth should be sufficient to absorb much of the new inventory.MINNEAPOLIS (NOV. 8, 2018) — NorthMarq Capital, the largest privately held commercial real estate mortgage banking firm in the U.S., announces the addition of multifamily investment sales in its Los Angeles regional office. Shane Shafer has joined as managing director to continue the expansion of NorthMarq Multifamily’s investment sales business.
Shafer brings more than 20 years of experience in investment sales, most recently working in Berkadia’s Irvine, California office, where he was the office’s top broker. His expertise is in the sale of apartments in Southern California for clients that range from some of the largest institutions to private capital. Recent sales include Capes at Ventura for $100 million, and the 254-unit Broadstone Serrano in San Bernardio, along with a significant number of sales in Orange County. During his career, he has represented owners in selling more than $3 billion in sales of apartments in California.
“My clients will benefit from the collaboration of investment sales and financing services to provide them the best service and most seamless execution for their real estate solutions. I am excited to join such a fast-growing, exciting platform,” Shafer said.
Jeff Weidell, president-NorthMarq Capital, said, “Shane is a great fit for our expanding multifamily business. Given the size of the Southern California market, it is a strategic growth opportunity for us as we integrate the sales and finance business on the West Coast.”
Trevor Koskovich, president-NorthMarq Multifamily, is leading the platform’s growth, which now includes investments sales professionals in Arizona, Kansas, Missouri, New Mexico and Texas. He is focused on recruiting professionals who are interested in leveraging the company’s culture and debt/equity history.
The Los Angeles regional office is one of NorthMarq Capital’s top performing offices, led by Ory Schwartz and Mike Elmore. “We are excited about the synergy that Shane will bring as he grows the multifamily investment sales team here,” said Elmore, executive vice president/managing director.
Shafer joins the debt and equity team at NorthMarq Capital’s Los Angeles regional office, 500 Newport Center Drive, Suite 650, Newport Beach, California.
In business since 1960, NorthMarq Capital has grown to nearly 550 employees through more than 20 acquisitions, now servicing over $53 billion of loans on $13 billion of annual production.
Wendy Albright in our Los Angeles office celebrates 25 years with the company this month. Thanks for being part of the team, Wendy!
LOS ANGELES (October 4, 2018) – NorthMarq Capital, a leader in financing commercial real estate throughout the United States, announced today that Brendan Golding will be joining its Los Angeles-based production team in the role of vice president/producer.
At NorthMarq Capital, Golding will be responsible for originating, underwriting and closing real estate loans through NorthMarq’s preferred life insurance correspondents, Fannie Mae, Freddie Mac, FHA/HUD, conduit lenders, debt funds, banks, credits unions and other financial institutions.
Prior to arriving at NorthMarq Capital, Golding worked on a production team as part of Natixis’ Western Region, primarily focusing on the origination and underwriting of conduit and balance sheet loans. Previously, Golding held a position in the underwriting department of Freddie Mac’s Western Region Multifamily Group. During his tenure within the lending industry, Golding gained exposure to over $7 billion in capital lending. Golding has expertise in every stage of a transaction, from the initial quoting through successful execution and funding.
“Adding Brendan to our already top performing office will give us a strong young professional with tremendous growth potential. His experience working at both Freddie Mac and Natixis gives him an excellent and diverse real estate background in lending which will transition well to new loan originations,” said Michael Elmore, executive vice president/managing director of NorthMarq Capital’s Los Angeles office.
Golding possesses a Bachelor of Arts degree in History and French with a business minor from the University of Oregon. He is a licensed real estate salesperson in the state of California.
Mike Elmore in our Los Angeles office is celebrating 25 years with NorthMarq! He’s known for being a disciplined, organized coworker and a great role model. He enjoys surfing, fishing, snowboarding and travel. His outdoor skills were much appreciated during a snowstorm in the Tetons when the LA office took a small group of lenders on a memorable hike last month. Thanks for being part of the team, Mike!
Investors are refinancing apartment deals before rates head up. Advanced Real Estate Services has closed nearly $252 million in financing deals, with refinancing transactions representing a majority of the bunch. Of the eight deals, all of which were secured by NorthMarq Capital, six were refinanced early and the firm paid the prepayment penalty on two, one of which included a defeasance. The remaining two deals included an acquisition financing for Stadium House in Anaheim and the refinancing of an existing loan. Advanced pulled significant equity out of the properties as well, and plans to use the proceeds for other acquisitions.
“Advanced likes to do max leverage, 10-year, interest-only deals, and the time was right to do it,” Michael T. Elmore, EVP and managing director of NorthMarq Capital’s Los Angeles regional office told GlobeSt.com. “They generated a substantial amount of refinance proceeds, and non of it will go into the acquisition of Stadium House, but it will be sitting in operating accounts for Advanced to go out and buy more assets in the future. This was opportunistic on their part. They took advantage of the market while rates are still relatively low and pulled equity out of those assets. This is just good timing. They got a relatively low interest-rate, 10-years interest-only and they got maximum leverage with a ton of cash-out on the transaction.”
The seven refinanced properties include The Parsons, a 60-unit property Costa Mesa; Eastside, a 98-unit property in Costa Mesa; The Courtyards, a 153-unit property in Norwalk; Tierra Palms, a 144-unit property in Norwalk; Somerset, a 256-unit property in Montebello; Northwind, a 102-unit property in Bellflower; and Artists Village Apartments, a 197-unit property in Santa Ana. All of the deals had a 10-year term, interest-only with average interest rate of 4.229 percent. Artists Village and Tierra Palms deals required a pre-payment penalty and were funded through Fannie Mae. “Because Fannie and Freddie are running slightly behind their production in the previous year, they were both very aggressive in quoting this deal,” says Elmore. “We went with Fannie because they had a better deal, but Freddie was right there.”
Northwind, Courtyard, Eastside and Parsons did not require a pre-payment penalty, although Advantage chose to refinance these loans early. “Advanced was in the variable rate period, so there was no pre-pay, but they had higher coupons then the fixed-rate financings we put in place,” said Elmore. “So, there was no penalty, they got substantial cash-out and their 10-year interest-only was lower than their floating rate. So, they lowered the rate and took out money.”
Advanced is not alone. Elmore says that the bulk of his office’s transaction volume is refinancing deals. “Last year, nationally, investment sales were down 30 percent, so there is less purchase money transactions,” he explained. “We end up doing our share of them, but I think the bulk of the activity is refinancing. There isn’t a lot of new construction or purchase money transaction. The bulk of our work typically tends to be in refinancings, but I would say more so now than normal. Generally, people are pulling forward refinancing. Part of that is interest rates and the other part of that is recapturing equity.”
This year, Elmore expects the industry to be five percent to 10 percent down, but NorthMarq is exceeding their year-over-year volumes. In general, he is expecting a strong second half of the year. “We are ahead of where we were at this time last year,” he added. “I think the industry will be down five percent to 10 percent this year, so we are off the peak, but we are off a very high peak, so it is still good.”
The most common incentives being offered for multifamily financings are from the agencies and involve pricing discounts, such as affordable components and green rewards, Ory Schwartz, senior vice president/managing director in NorthMarq’s Los Angeles office, told GlobeSt.com. As recently reported by the publication, NorthMarq arranged refinancing of $40 million for two multifamily properties in California and Nevada and the buyer took advantage of green rewards and year-end promotional pricing to secure the deals.
GlobeSt.com spoke with Schwartz about the types of financing incentives multifamily buyers are using to close deals.
GlobeSt.com: What are the most common financing incentives buyers are using to close multifamily deals?
Schwartz: The most common incentives being offered for multifamily financings are from the agencies (Freddie Mac and Fannie Mae—deals that qualify as “uncapped” deals, which are either fewer than 50 units and/or have an affordable component, receive pricing discounts. Additionally, properties that can qualify for the green-rewards programs will also receive pricing discounts. It is important to note that a borrower cannot “double dip” and receive both pricing discounts on a given deal.
GlobeSt.com: Why are incentives like green rewards and end-of-year pricing promotions used, and how prevalent are they in closing deals?
Schwartz: By the fourth quarter of 2017, Fannie Mae had excess capacity in “capped” business (more than 50 units and market rate). As a result, Fannie Mae was offering pricing discounts on deals that would close by year end, and many borrowers were able to take advantage of this. Regarding the green rewards, this was very popular in 2017, as many properties qualified. Both Fannie Mae and Freddie Mac have each increased their threshold from 15% and 20%, respectively, to 25% for water or energy savings. We anticipate that there will be a material drop in properties that can qualify going forward.
GlobeSt.com: What other trends are you noticing in multifamily financing?
Schwartz: Multifamily financing remains very stable, and both Fannie and Freddie have lease-up and value-add programs in addition to their core products.
CMBS issuance was higher than expected in 2017. Can the trend continue?
Sourcing new loans could be a bigger challenge in the coming year as the wall of maturities continues to shrink.
The CMBS market is kicking off 2018 with a lot more confidence than was the case a year ago.
In 2016, everyone was living in fear of risk retention rules and what they were going to do to the CMBS market, notes Tom Fish, executive managing director and co-lead of the real estate investment banking practice at real estate services firm JLL. People were worried that the new rules that went into effect last January would slow issuance, significantly increase pricing and tilt the playing field in favor of bigger players.
Although some CMBS issuers have left the market, there continues to be about two dozen active firms, and fears about higher prices and lower issuance were never realized. “I’m very optimistic about what’s going to happen over the next year,” says Fish. “If rates don’t run away from us, I expect that we will have a good 2018.”
CMBS has regained some of the momentum it lost in 2016. In 2017, U.S. issuance reached $95.3 billion compared to $76 billion in 2016, according to Commercial
Mortgage Alert, an industry newsletter. “Most people are thrilled at the issuance level we have achieved,” says Manus Clancy, a senior managing director at data firm Trepp LLC. Going into 2017, there was a lot of uncertainty about how the new deals would be received by investors, what the pipeline would look like, or how much competition would come from insurance companies, he adds.
Issuers are now using three different structures to manage the risk retention rules, carving out a horizontal tranche, a vertical tranche or an “L” shaped that is a combination of the two. So far, there is no single structure that has emerging as the preferred choice. All are being used fairly equally on a case-by-case basis. “That is a good thing, because it gives the issuers and the B-piece buyers all some level of flexibility,” says Clancy.
One reason why higher costs didn’t materialize is because there is a perception that risk retention boosted loan quality and investors are paying higher prices for the non-retained bonds, notes Ory Schwartz, a managing director at capital services provider NorthMarq Capital in Newport Beach, Calif. Issuers are being disciplined in their underwriting. Some shops have also tightened spreads in order to attract the better loans.
Challenges linger in 2018
The CMBS market has adapted to risk retention rules, but it is not all smooth sailing. Sourcing new loans could be a bigger challenge in the coming year as the wall of maturities continues to shrink. Trepp is predicting that U.S. issuance will decline to about $80 billion in the coming year. “The rightsizing of this market seems to be in that $75 to $125 billion range,” says Clancy.
CMBS remains a competitive financing option, along with banks, life companies and private equity sources. “Based on what other capital sources are doing, there is always going to be a need for CMBS in the niche it plays, which is higher leverage and secondary and tertiary markets,” says Schwartz. For many borrowers who want fixed-rate, non-recourse loans, CMBS is still the best option, he adds.
Yet the industry is bracing for a thinning deal pipeline from loan maturities. Although there was a fair amount of five-year loans written in 2013 that will be coming due, there is going to be a sharp drop in 10-year maturities that will impact issuance volume this year, notes Schwartz. CMBS lending peaked in 2007 with issuance that topped nearly $230 billion before plummeting to $12 billion in 2008, according to Commercial Mortgage Alert.
And despite improving delinquency rates, retail properties continue to be a concern. The industry is keeping close tabs on its exposure to retail in terms of centers losing major anchors and potential loan defaults. Capital may be less available for new retail loans. Retail loans are generally going to class-A properties with a good tenant base and long-term leases. Older malls in secondary and tertiary markets that are anchored by Sears, Macy’s and J.C. Penney are going to be harder to finance across all lending sources, notes Clancy.
Another question for the CMBS market is whether the banks that are originating and retaining a piece of that issuance will reach capacity at some point, and if so, how might that impact the CMBS sector. “Will they find a way of selling off some of that and keeping that power dry, or will they have a problem? I think that’s unclear at this point,” says Fish.
Owners of office properties should match lenders with product type
A majority of the population will always need to work, and chances are many will need an office space in which to work. While this property type requires significant capital to retenant vacant spaces, as long as the cash flow and re-tenanting costs are underwritten correctly, all major lender segments have an appetite to lend on office properties. Office properties are also less susceptible to the internet eating into its tenant demand, unlike the retail property segment. In fact, many technology/internet companies like Google, Microsoft, Apple, Salesforce and LinkedIn have absorbed the most office space over the past five to 10 years due to their rapid growth. Read Joe’s perspective in Western Real Estate Business‘ Market Highlight: Los Angeles.
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Michael Elmore was recently selected as one of Real Estate Forum’s Rainmakers. The Rainmakers compilation was the publication’s second-ever ranking of the nation’s top debt and equity originators. To be selected, nominees received a score for two fields—the total number of transactions and the total volume of all transactions. Check out Michael’s recognition here…
LOS ANGELES (June 16, 2014) – The Los Angeles office of NorthMarq Capital announced that Joe Giordani has joined its production group as a vice president. Giordani most recently served as director and manager of Barry Slatt Mortgage Company’s Orange County office in Newport Beach, California. As a producer at Slatt, he was responsible for the entire transaction process, including sourcing clients and originating and closing loans.
Before joining Slatt, Joe was an office leasing broker for nearly 10 years, beginning his career with Cushman & Wakefield in New York City and later transitioning to CBRE in San Francisco.
Giordani will fulfill clients’ commercial and multi-family property needs by offering financing through NorthMarq’s preferred life insurance correspondents, Wall Street conduits, Fannie Mae, Freddie Mac, HUD and other exclusive lenders.
Giordani holds a Bachelor of Arts degree from the University of Colorado with a major in economics and a minor in business.
“We are very excited that Joe has decided to join us. He will be a dynamic long term NorthMarq employee with tremendous growth potential,” said Michael Elmore, executive vice president of NorthMarq Capital’s Los Angeles office. “Joe fits our local and company culture and will greatly benefit from a substantially expanded group of capital providers and personal mentoring from our group.”
