Other - Debt

NorthMarq Capital

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

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.

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of $13 billion, loan servicing portfolio of more than $55 billion and the multi-year tenure of our more than 500 people.