Northmarq secures a $10 million construction-to-permanent loan on an apartment complex in Nampa, Idaho

BOISE, IDAHO (May 13, 2022) - Steve Hollister, senior vice president, arranged a $10 million construction-to-perm loan secured by an apartment complex located in Nampa, Idaho. The transaction was structured with a 10-year loan term and a 30-year amortization with two years of interest only. 

Northmarq arranged this loan through a regional bank that won this business by offering an attractive 10-year construction-to-perm loan that allows flexible prepayment. The prepayment penalty is waived if the property is sold or refinanced with institutional/non-bank debt and there is no prepayment penalty after the third year. 

“The lender offered a quick rate lock in a volatile interest rate environment which was crucial,” said Hollister. “The fixed rate construction-to-perm loan enabled the borrower to lock the interest rate prior to commencement of construction to take interest rate risk off the table. The rate lock combined with the flexible prepayment provided the borrower a perfect combination of risk mitigation and flexibility.”