NorthMarq Capital finalizes $38.40 million in financing via Freddie Mac for two Northern California multifamily properties
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
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Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq's solid foundation and entrepreneurial approach have built an annual transaction volume of more than $39 billion and a loan servicing portfolio of more than $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq established itself as a provider of opportunities across all major asset classes. For more information, visit: www.northmarq.com.
