NorthMarq Capital’s Los Angeles office arranges non-recourse acquisition financing of $7.6 million for mixed-use property in La Jolla, California

LOS ANGELES (December 14, 2017) – Joe Giordani, vice president of NorthMarq Capital’s Los Angeles office, arranged an acquisition bridge loan of $7.6 million for a mixed-use property in La Jolla, California. The property consists of high-end apartments with ocean views and ground floor retail. Although the property was 100 percent leased at the time of purchase, there is significant upside in the rents pending a full renovation to the property. The loan was structured through a non-recourse debt fund that provided nearly 70 percent loan to cost financing on a non-recourse basis and the ability to draw additional funds to improve the property. The floating rate loan was originated through one of NorthMarq’s long standing bridge lender relationships. “Given the low cap rates that apartment purchases are demanding these days, coupled with the value-add nature to improve the below market cash flow of the property, the banks were limited to 50 percent loan to purchase,” said Giordani. “The sponsor was interested in finding a non-recourse bridge lender that could provide more loan proceeds to efficiently execute their business plan and maximize their investor’s returns. This proven lender offered a loan that enabled them to do just that.”