SAN DIEGO, CALIFORNIA (October 12, 2021) – Steve Hollister, senior vice president, arranged a $15 million fixed-rate loan secured by a 110,474 sq. ft. industrial complex in San Diego, California. The asset consists of three concrete tilt-up buildings. One of the buildings is multitenant divisible down to 3,000 sf. The other two buildings are divisible but are leased to single tenants. Each of the tenant suites has at least one roll-up grade-level door.
The transaction was structured with a 15-year loan term and a 30-year amortization schedule. NorthMarq arranged the loan through its correspondent relationship with a life insurance company. The loan is non-recourse and is structured with a stepdown prepayment in the last five years. The asset was under construction and 77 percent leased at the time the loan application was signed and the interest rate locked.
“NorthMarq’s correspondent life insurance company won this business by offering a very competitive interest rate with flexible funding options, including the ability to fund the loan at the then current 77 percent occupancy with a holdback or master lease, or with no structure if the occupancy reached 85 percent,” said Hollister. “The lender gave a 120-day funding window from loan application/rate lock to maximize the opportunity for lease-up. The subject was 100 percent occupied at loan funding.”