Northmarq recognized for three CoStar Impact Awards for Sale of the Year
MINNEAPOLIS, MINNESOTA (April 3, 2023) — Northmarq’s investment sales teams from St. Louis, Charlotte, and Los Angeles have received the Best Sale Award for CoStar’s 2022 Impact Awards for the Madison 4 Portfolio, NOVEL LoSo Station, and Baldwin Village. The CoStar Impact Awards recognize exceptional commercial real estate transactions and projects completed in 2022 with influence in neighborhoods or submarkets across 128 major markets.
Best Sale/Acquisition in Milwaukee/Madison: Madison 4 Portfolio
Parker Stewart, Dominic Martinez, Alex Malzone
The 1,288 unit portfolio consisted of four properties – Carolina Apartments (1967 vintage), The Monticello (1990 vintage), Monona Lakeview (1956 vintage) and Country Meadows (1972 vintage) – spread across three very different areas within Madison. Northmarq’s team was one of a handful groups who were asked to evaluate the portfolio. Given Northmarq’s broad reach, we were fortunate to be awarded the assignment from the local owner, who had developed and purchased the assets over the course of 50 years. Northmarq’s team decided to take the portfolio to market in late June 2022, shortly after a large interest rate hike in May and as the overall market sentiment began to shift. The scale of the portfolio, the exceptional locations and high barrier to entry all generated substantial interest from investors across the country. Despite the changing market conditions and volatile capital markets, our team was able to execute for the seller and close on the largest multifamily portfolio sale in Wisconsin history.
Best Sale/Acquisition in Charlotte: NOVEL LoSo Station
Allan Lynch, Caylor Mark, Andrea Howard, John Currin, Jeff Glenn, Sara Wagman
NOVEL LoSo Station is a newly built transit-oriented apartment development situated in Charlotte’s thriving entertainment district of Lower South End (“LoSo”). NOVEL LoSo Station is a trophy asset that garnered substantial attention from the investment community despite finishing lease-up amidst an increasingly rocky capital markets environment. Notably, the property’s operating performance mirrored its physical quality. In fact, Novel LoSo Station averaged 38 move-ins per month from April to June 2022, and it saw an eye-popping 16.2 percent increase in market rents since leasing began. Unsurprisingly, the factors driving the rapid lease-up pace also drove investor. Ultimately, NOVEL LoSo Station was acquired by MAA in an all-cash transaction.
Best Sale/Acquisition in Los Angeles: Baldwin Village
Vince Norris, Jim Fisher, Mike Smith, Bryan Schellinger, Shane Shafer, Joe Giordani, Scott Botsford, and Brendan Golding
Baldwin Village, a 669-unit apartment community built in 1948, located in the heart of thriving Baldwin Hills submarket in Los Angeles, California. The investment sales teams’ marketing strategy was multi-faceted, looking at the asset as a deed restriction to convert to income/rent restricted housing, as a market-rate value-add project with the potential impact of the addition of future ADU’s, and as a complete “ground-up” redevelopment with all current zoning and tax related incentives available. While all three strategies were presented to national and international investors, the best use of the project was quickly determined to be as a deed restricted community serving lower income residents in the area. In addition, Joe Giordani, Scott Botsford, and Brendan Golding of Northmarq’s Newport Beach debt/equity team secured acquisition financing of $121 million for the property through Fannie Mae.
“We were able to push our Fannie Mae affordable group to underwrite collections aggressively and maximize loan proceeds for Avanath. The team secured attractive full-term interest only floating rate debt with an aggressive spread and proceeds of 55 percent loan to purchase price,” said Giordani. “This was a great team effort—from our internal Fannie team to the collaboration with our investment sales team. The end result is a great loan and smooth closing for our client.”
Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq's solid foundation and entrepreneurial approach have built an annual transaction volume of more than $39 billion and a loan servicing portfolio of more than $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq established itself as a provider of opportunities across all major asset classes. For more information, visit: www.northmarq.com.