October 12, 2026

A seamless exchange: How Northmarq helped Partner Apartments navigate a 1031 transaction

One Northmarq Case Study

Overview

Partner Apartments is a multifamily investor active across the Midwest. The firm holds and manages apartment communities with an eye toward long-term value creation, and it relies on trusted advisers to move quickly when the right opportunities arise.

For this assignment, Partner Apartments set out to sell one multifamily asset and reinvest the proceeds into another, all while satisfying the strict requirements of a 1031 exchange. The firm turned to Northmarq to guide both sides of the process, drawing on an established relationship and the confidence that comes from working with one company across a full range of transaction needs.

The challenge

A 1031 exchange gives investors a powerful way to defer capital gains taxes by reinvesting sale proceeds into a like-kind property, but the strategy also comes with tight deadlines and moving parts that must align precisely. Partner Apartments faced three interconnected challenges:

Unwinding existing debt through defeasance. The debt on Radford Place Apartments in Dubuque, Iowa, had to be retired before the sale could close. Defeasance is a detailed process that requires careful coordination to release the borrower from an existing loan without disrupting the broader transaction timeline.
Managing 1031 exchange timing. A 1031 exchange requires the investor to identify a replacement property within 45 days and close within 180 days of the sale. Missing either deadline can jeopardize the tax deferral, so the sale of Radford Place and the acquisition of Station Lofts had to progress in lockstep.
Securing financing on both transactions at once. Partner Apartments needed acquisition financing arranged in parallel, with terms that supported the firm's long-term plans for each asset. Coordinating two separate loans across two markets added another layer of complexity to an already demanding timeline.

Handled through separate providers, these tasks would have required Partner Apartments to coordinate among multiple firms, each with its own process and pace, raising the risk of a misstep at a critical moment.

The solution

Northmarq brought the full breadth of its platform to the assignment, uniting six business lines under a single, coordinated team. Each group led in its area of expertise while maintaining a seamless experience for the client.

Sale of Radford Place Apartments (Dubuque, Iowa)

Investment Sales listed the 108-unit garden-style community and guided the sale process, ultimately closing at $14.3 million. The property drew substantial regional and national interest, with 91% of offers coming from out-of-state investors.
Defeasance supported the unwind of the existing debt, clearing the way for the sale to close on schedule.
Northmarq Exchange served as the qualified intermediary, holding the sale proceeds to preserve the 1031 exchange.
Debt + Equity, in partnership with Northmarq Agency, secured a $9.417 million acquisition loan for the buyer through Northmarq's in-house Fannie Mae DUS platform. The borrower locked the interest rate within two weeks using Fannie Mae's Streamline Rate Lock, gaining early rate certainty while preserving the flexibility to lock at the most favorable point in the market.

Acquisition of Station Lofts (Leavenworth, Kansas)

Northmarq Exchange facilitated the use of the Radford Place proceeds to complete the 1031 exchange.
Debt + Equity, in partnership with Northmarq Agency, arranged $14.3 million in acquisition financing for the 148-unit mid-rise community through a correspondent relationship with Freddie Mac. The permanent fixed-rate loan was structured on a 10-year term to support Partner Apartments' long-term plans for the asset.
Loan Servicing, in partnership with Northmarq Agency, will continue supporting the client through management of the Agency loans on both properties.

The effort drew on trusted internal relationships. The Minneapolis Debt + Equity team of Dan Trebil and Logan McCarthy led the Station Lofts financing and connected the client with Northmarq's defeasance and 1031 exchange services early in the process. Chris Hall led the defeasance and 1031 exchange work across both transactions. Parker Stewart listed the Radford Place property, and the Newport Beach Debt + Equity team of Joe Giordani and Brendan Golding supported the Radford Place buyer's Agency financing.

That early collaboration allowed each team to focus on its specialty while the client experienced one coordinated Northmarq team from start to finish.

“It's one less thing for me to worry about because I know Chris will deliver,” Trebil said of connecting his client with Hall for the 1031 exchange and defeasance services.

The outcome

By bringing the full Northmarq platform to the table, Partner Apartments completed a complex set of transactions on time and without disruption.

The 1031 exchange was completed successfully. Northmarq Exchange facilitated the reinvestment of proceeds from the Radford Place sale into the Station Lofts acquisition, allowing Partner Apartments to defer capital gains and preserve capital for reinvestment.
Financing was secured on both assets. A $9.417 million Fannie Mae acquisition loan supported the Radford Place buyer, and a $14.3 million Freddie Mac fixed-rate loan supported the Station Lofts acquisition on a 10-year term aligned with the client's long-term strategy.
The debt on Radford Place was retired cleanly through defeasance, keeping the sale on schedule.
The client experienced a single, seamless process. Rather than coordinating among several external providers, Partner Apartments worked with one company across investment sales, defeasance, the 1031 exchange, financing and ongoing loan servicing.

This assignment reflects what becomes possible when Northmarq operates as one integrated team: stronger client relationships, more complete service and better outcomes across every stage of a transaction.