NorthMarq Capital arranges $7 million preferred equity investment for class “A” multifamily complex in Santa Rosa, California

SAN DIEGO (November 8, 2016) – Eric Flyckt, managing director/senior vice president of NorthMarq Capital’s San Diego office, arranged a $7 million preferred equity investment from an equity fund for the acquisition and renovation of a 140-unit, class “A” garden-style multifamily complex, located in Santa Rosa, California. The attractive property, situated approximately 50 miles north of San Francisco, was built in 2005 and contains a mix of 1-, 2- and 3-bedroom units. The preferred equity investment is subordinate to a senior mortgage loan from a bank. The financing is structured with a reserve for the renovation of the property in order to achieve increased rental rates which are supported by newer area properties. The capital improvements will comprise significant interior renovations, cosmetic exterior renovations, as well as upgrades to the clubhouse and pool area. Amenities include a pool, spa, fitness center, clubhouse, business center, numerous garages and carports, 9 foot ceilings, central HVAC, washers/dryers and fireplaces in select units. Other property attributes include a close proximity to retail and employment centers, very strong submarket with high barriers to entry and a desirable location with a low density of 15 units per acre. “This deal closed in 45 days from the time we contacted the investor. We were very pleased that the investor was able to structure the deal to conform to the requirements of the senior lender,” said Flyckt.