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.“