NorthMarq Capital finalizes $38.40 million in financing via Freddie Mac for two Northern California multifamily properties

Austin Commons/Gateway Apts

Debt & Equity

Multi-Tenant

LOS ANGELES (December 11, 2018)– Ory Schwartz, senior vice president/managing director of NorthMarq Capital’s Los Angeles regional office, secured financing totaling $38.40 million for two multifamily properties (consisting of a combined 445 units) located in Northern California. The financings were on behalf of two Tenants in Common, consisting of private investors. NorthMarq arranged financing for the borrowers through its Freddie Mac platform.

Austin Commons, a 209-unit multifamily property located at 50 Austin Avenue in Hayward, California received refinancing of $16.80 million. The transaction was structured with a 10-year, interest-only term.

Gateway Apartments, a 236-unit multifamily property located at 902 Davis Street, San Leandro, California received refinancing of $21.60 million. The transaction was structured with a 10-year, interest-only term.

“These transactions were early refinances of existing Freddie Mac loans that NorthMarq had originated in 2013, with approximately 4.5 years of loan term remaining. The sponsor was concerned of where interest rates would be in 2023 when the loans were scheduled to mature. NorthMarq modeled various scenarios that analyzed refinancing early versus waiting until 2023. Based on the results, Sponsorship opted to move forward and defease the existing loans in order to lock-in today’s attractive financing for the next decade. Additionally, the new loans were full term IO, which will generate more cash flow than the amortizing loans that were paid off.”

Ory Schwartz, senior vice president/managing director

View Available Multifamily Listings

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.