SAN FRANCISCO (January 20, 2021) – Managing Director Dennis Williams and Vice President Tom Wight have closed a $59 million non-recourse loan to refinance Ilara Apartments, a mid-rise luxury multifamily community located in Milpitas, California. Analysts Jackie Goldsmith, Anika Sachse-Tiglao and Soraya Rios helped to facilitate a successful transaction.
NorthMarq arranged the financing through a correspondent life insurance company on behalf of the Sponsor, JB Matteson, Inc. of San Mateo, California. The loan bears a fixed 3.10 percent interest rate with interest-only debt service payments for the full 10-year term.
“One of the major benefits of the life company loan was the borrower’s ability to lock the interest rate three months in advance,” says Wight. “This enabled the borrower to eliminate interest rate risk while allowing time for the prior loan’s prepayment penalty to burn off.”
The 200-unit luxury apartment community is conveniently located in Silicon Valley, and features community amenities such as a state-of-the-art fitness and conditioning club, social lounge with kitchen and gaming room, pool and spa with fireside lounge, and common-area WiFi. Units feature open floor plans with nine-foot ceilings, stainless steel appliances, gas stoves, in-home washer and dryer, central heating and air conditioning, and private patios and balconies.
