Northmarq arranges a $17.895M construction-to-perm loan on an industrial building in San Diego, CA

San Diego, Ca. — Steve Hollister, senior vice president of Northmarq’s Boise Debt + Equity team, arranged a $17.895 million construction-to-permanent loan for a 100,000-sq-ft industrial building located in San Diego, California. The property is a build-to-suit for a single, non-credit tenant.

The non-recourse loan was structured with a 15-year loan term on a 30-year amortization. Northmarq arranged the financing for the borrower through its correspondent relationship with a life insurance company.

The construction-to-perm loan allowed the borrower to lock in a low interest rate at very favorable loan terms prior to the start of construction. The interest rate was fixed for the entire term at loan application with the construction loan period (24 months) being interest only. The loan is non-recourse with a completion guarantee required during construction. It automatically converts to an amortizing permanent loan at completion and occupancy of the building.