BOSTON, MASSACHUSETTS (March 25, 2020) – Jeff Munoz, vice president of NorthMarq’s Boston office arranged acquisition financing of $4 million for a 6-unit multifamily property located at 34 Heath Street in Somerville, Massachusetts. The construction loan was structured with interest-only payments throughout construction and open prepayment once complete. NorthMarq arranged financing for the borrower through its relationship with a local bank.
This project represents one of the final condominium conversion projects in Somerville prior to new regulations put in place. We expect to see an increase in traditional rehabilitation projects rather than condominium conversions moving forward as Somerville seeks to increase their supply of rental units in the city. Developers still see Somerville as a strong multifamily market but value opportunities are becoming scarce as rent growth has plateaued and an influx of new supply coming online.
“With many moving parts, NorthMarq was able to work with the borrower and lender to secure a quick closing only 30 days after application,” said Munoz.