NorthMarq Capital’s Los Angeles office arranges $6.6 million cash-out refinance for retail property in Las Vegas, Nevada

LOS ANGELES (July 19, 2016) – Joe Giordani, vice president of NorthMarq Capital’s Los Angeles-based regional office, arranged a $6,600,000 million refinance for a 107,000 sq. ft. grocery anchored retail property located in Las Vegas, Nevada. The transaction was structured with a 10-year term and 30-year amortization schedule. NorthMarq arranged financing for the borrower through its relationship with a CMBS lender. NorthMarq Capital will also be servicing the loan. According to Giordani, the loan was complicated by a variety of factors. The property had an existing CMBS loan maturing from 2006. Given the low leverage nature of the deal, the borrower wanted to explore a life company execution in order to lock rate at application and reduce reserves going forward. During the process the Phase I environmental report indicated that a dry cleaner had operated an onsite plant back in the 1960's and recommended a Phase II environmental report be completed. The borrower did not want to drill on his property for fear of what they might discover and potentially having to do remediation. “At the borrower’s request, we shifted gears and switched to a CMBS lender. The benefit of the CMBS market with environmentally challenged properties is that some CMBS lenders will accept environmental insurance in place of completing a Phase II,” said Giordani. “We were able to secure an economically attractive environmental insurance policy to make both the borrower and CMBS lender comfortable and close the loan as planned. The CMBS rate ended up being 10 bps lower than the life company loan as well, which was a result of good market timing.”