NorthMarq Capital’s Los Angeles office arranges $8.1 million construction loan for a 24 Hour Fitness in Arvada, Colorado

24 Hour Fitness

Debt & Equity

Multi-Tenant

LOS ANGELES (August 11, 2017) John Marshall, vice president of NorthMarq Capital’s Los Angeles regional office, negotiated $8,100,000 construction financing for a 63,110 sq. ft. single-tenant 24 Hour Fitness located in Arvada, Colorado. The project’s total cost was $13,760,000 which included significant tenant improvement dollars and the installation of rooftop solar panels. The borrower, a Los Angeles based developer, engaged NorthMarq to find a construction-to-permanent loan to re-tenant a vacant grocery store with a new 24 Hour Fitness gym.

NorthMarq drew on existing banking relationships to find a six-year and three month (75 months total), fixed rate construction-to-permanent loan with minimal prepayment penalties, no deposit requirements, and minimal structure. The loan features a 5.12 percent interest rate and a 25-year amortization schedule, and did not require an interest rate swap.

“The non-credit tenant ruled out a number of lenders but the sponsor’s multiyear track record with the tenant and low acquisition basis made the deal attractive to multiple banks. Ultimately a regional bank offered the most flexibility, tailored the term to rent bumps on a 20-year lease, and allowed the sponsor to capitalize the significant cost of rooftop solar panels for additional proceeds,” said Marshall.

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About Northmarq

Northmarq is one of the largest privately held commercial real estate firms in the United States, combining a nationwide presence with deep local expertise. With more than 50 offices across the country, we provide a full suite of debt, equity, investment sales, loan servicing and fund management solutions for a comprehensive range of property types. Our unique structure allows us to connect clients with the best opportunities, yet be nimble enough to ensure access to every expert across our company. The firm manages a loan servicing portfolio of over $78 billion and has completed $69.5 billion in transactions over the past three years. At Northmarq, collaboration fuels results, helping clients achieve success in every market, nationwide. For more information, visit www.northmarq.com.