Northmarq’s West Palm Beach Debt + Equity team arranges refinance of Florida-based life sciences building

Northmarq’s West Palm Beach Debt + Equity team of David Gahagan, Chris Hammel and Chandler Kaye successfully arranged the $38.2 million refinance of a Florida-based life sciences building. Northmarq arranged the permanent-fixed debt deal through a correspondent relationship with a life insurance company. The transaction was structured on a 20-year term.

Currently, the building is roughly 80% leased to a single-credit tenant on a long-term lease and located in a secondary market. Based on the credit strength of the tenant, the lender was able to get comfortable with the transaction, with the ability to fund additional proceeds if the tenant takes the remainder of the space.   

The developer built a high-quality life sciences project with a total cost around $1,000 per square foot. Approximately 50% of the building was initially leased to a tenant on a long-term lease. Ultimately, the tenant reassessed its need and expanded its presence to 80% of the building. The owner worked with the tenant to provide additional tenant improvements which were funded through cash due to lending challenges that many developers are facing. Northmarq secured a new loan to pay off the existing lender and recoup most of the additional cash invested in the project.

“Like many situations in today’s market developers are facing changing market conditions, cost overruns and project funding issues,” Gahagan said. “The Northmarq team remains committed to finding solutions for our borrowers in a tricky market. Congrats to the developer for persevering in a difficult situation, and thank you to the lender for recognizing the excellent opportunity to place a high-quality loan. We were glad to be a part of the solution.”