Multifamily - Debt

NorthMarq Capital

NorthMarq Capital secures $141.5 million financing for Aliso Creek Apartments in Aliso Viejo, California

LOS ANGELES (July 9, 2018) – Michael Elmore, executive vice president/managing director of NorthMarq Capital’s Los Angeles regional office, negotiated the $141.5 million refinance of Aliso Creek Apartments, a 535-unit multifamily property located in Aliso Viejo, California. The transaction was structured as a full-term interest-only loan. NorthMarq arranged financing for the borrower through a serviced CMBS lender. 

“We closed a highly structured transaction with a major New York investment bank,” said Elmore. “The execution was excellent and they held the ‘all-in’ spread despite market widening without re-trades.”

The financing package closed at 5.15 percent; 1.20 IO DCR; and 78.5 percent LTV on a 4.50 percent California cap rate. The package provided a long-term capital solution to the borrower and took out a senior bridge and mezzanine deal placed by NorthMarq Capital in 2014. The New York-based investment bank will securitize the pure investment Grade A note in June 2018. Two Korean institutions will split the B note. The mezzanine loan was placed with a New York hedge fund.

The bank took down all of the secured debt at closing and will cut the B notes prior to securitization of the senior portion. NorthMarq will service the A and B notes totaling $121.5 million. The mezzanine provider will receive direct payments on the $20 million mezzanine loan. 

“While this was a complicated financing package, all parties worked great together including the mezzanine provider,” said Elmore.“

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.