Northmarq arranges financing of $7.323 million for the acquisition of an apartment complex in Carson City, Nevada

BOISE, IDAHO (December 21, 2021) – Steve Hollister, senior vice president of Northmarq’s Boise and San Diego regional offices, arranged $7.323 million in permanent financing to facilitate a purchase transaction of an apartment complex located in Carson City, Nevada. The transaction was structured with a 10-year fixed loan on a 30-year amortization schedule with one year of interest only. The loan proceeds equated to 77 percent of the purchase price. Northmarq arranged the financing as a direct DUS lender for Fannie Mae.

The apartment complex has 66 units consisting of 30 1 bed/1 bath units, 35 2 bed/2 bath units, and 1 studio. It is 100 percent affordable at 80 percent AMI. Most of the leases have rental rates that are under market, creating a value-add opportunity for the borrower.

The transaction is a “Mod-Rehab” loan structure that allows for additional loan proceeds to be funded in the future (in addition to Fannie Mae’s standard Supplemental) if an average of $8,000/unit is spent on renovations within the first 36 months. This loan structure was attractive to the borrower as they intend on completing capital improvements over the first couple of years, upgrading units as they roll and raising rents to market. 

Northmarq’s internal Fannie Mae team won this business by providing the “Mod-Rehab” structure and certainty of execution along with the highest loan proceeds at an interest rate that was lower than what was offered by competing lenders. “Our internal DUS team was outstanding from quote to close,” said Hollister. “They strategically worked with Fannie Mae and the borrower to meet timing issues and execute on the close at year end.”