Multifamily - Debt

NorthMarq’s correspondent life company relationship secures $26,360,000 acquisition financing during market complications

MIAMI, FLORIDA (May 11, 2020) – Bob Harrington, vice president of NorthMarq’s Miami office, and Joel Heikenfeld, senior vice president of NorthMarq’s Dallas office, collaborated to secure acquisition financing of $26.36 million for Keltonwood at Berewick. The 230-unit multifamily property is located at 5620 Keltonwood Road in Charlotte, North Carolina. The property is within walking distance to Berwick Town Center as well as Charlotte Premium Outlets and is a short few-minute drive to I-485. Residents benefit from open green spaces, while still with close proximity of major retail staples like Harris Teeter, Starbucks, Walgreens, and numerous other retail possibilities. 

The transaction, featuring a 3.10 percent fixed rate, was structured with a 10-year term with 5-years of interest-only followed by a 30-year amortization schedule. NorthMarq arranged financing for the borrower, Myers Apartment Group, through its correspondent relationship with a life insurance company. 

“The financial means and ability to close any transaction during these complex and uncertain times is a true testament of our commitment in this market sector and to our investors. We were very fortunate in acquiring this asset from one of the most renowned developers in the country coupled with the attractive financing made available to us. We appreciate the cooperation of all parties involved as the impact of COVID-19 became more prevalent throughout this process,” said Jeremy Myers, Principal of Myers Apartment Group. 

“This transaction ran the full gamut of COVID-19 related complications. Our client went under contract to acquire this new-construction asset in lease-up pre-COVID. They were able to secure and rate lock very favorable debt, and were proceeding towards closing,” said Harrington. During the closing process, the country began to shut down, which led to issues with our clients’ equity partner, and a renegotiation and extension of the purchase contract. “When all the dust settled, our correspondent life insurance company held true to their terms and rate lock, and our client was able to close on this trophy asset,” said Heikenfeld. “Great teamwork and communication by all – including the buyer, seller, lender and closing teams – made this a successful transaction.”

Apartment amenities include: Oversized windows casting natural light throughout, valet waste, white shaker-style cabinetry, white subway tile backsplash, luxury plank flooring, gray speckle granite countertops, satin nickel hardware finishes, stainless steel appliances, designer lighting package, 9-foot ceilings, oversized garden-style tubs, large walk-closets and expansive private balconies with view of the surrounding community. 

Property amenities include: Onsite pet washing station, controlled access buildings, smoke-free community, rentable detached garages, resort-inspired pool with private cabanas, outdoor fire pit, biergarten, pet park, gated parking in select areas, nearby nature trail, full size washer and dryer, outdoor Al Fresco dining area with grilling pit, 24-hour maintenance, indoor/outdoor pool bar, online rent payments, fitness center, social events, yoga/spin studio, cybercafé with coffee bar, private workstations, gaming/entertainment lounge, package pick-up, UBER pick-up/drop-off and resident storage. 

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of more than $14 billion, loan servicing portfolio of more than $61 billion and the multi-year tenure of our nearly 600 people.