BOISE, IDAHO (October 21, 2019) – Steve Hollister, senior vice president of NorthMarq’s Boise and San Diego regional offices, secured acquisition financing of $3,000,000 Fairview 40 Place Apartments through a correspondent life insurance company. The transaction was structured on a 10-year permanent fixed loan with a 30-year amortization. The asset was under construction when the borrower signed the loan application and locked the interest rate. The loan commitment allowed six months for the asset to be completed and stabilized with no premium in the interest rate.
The Fairview 40 Place Apartments, located in Boise, Idaho, is two 3-story buildings and one 2-story building, containing six 1 bed/1 bath and thirty-four 2 bed/2 bath units.
“This was a very attractive structure to the borrower, enabling them to eliminate interest rate risk well in advance of completion of construction and stabilization. The asset only needed to generate a certain NOI from tenants in occupancy to fund, without any additional stabilization period,” said Hollister.