LOS ANGELES (August 26, 2015) – Joe Giordani, vice president of NorthMarq Capital’s Los Angeles regional office arranged acquisition financing of $6.5 million for Huntington Marina, a 45,597 sq.ft. office property located at 4952 Warner Avenue in Huntington Beach, California. The non-recourse (87% loan-to-purchase) loan featured a 30-day close and was structured with a 2-year interest only term. The properties tenants include several small “mom & pop” tenants.
“This was a very interesting acquisition for a great piece of real estate with significant value-add potential,” said Giordani. “Occupancy was running about 80% with a majority of the “mom & pop” tenants on month-to-month leases. The buyers plan to clean up and extend the leases, complete external and internal renovations, as well as bring in some retail tenants on the ground floor (it is already zoned for retail). The challenge, we had to close the loan in 30 days due to a difficult seller and there was limited property information due to it being poorly managed for over a decade. However, this bridge lender understood the value-add business plan, saw the value creation potential, and stretched to get the deal. They offered the highest loan proceeds and the best interest rate on a non-recourse basis. Additionally, due to the NorthMarq relationship, they pushed their staff extremely hard to perform and close within the 30 day timeline.”
