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

Aliso Creek Apts

Debt & Equity

Multi-Tenant

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.“

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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.