NorthMarq Capital arranges refinancings for multi-state portfolio totaling $76.5 million

SAN DIEGO (Feb. 4, 2014) Steve Hollister, senior vice president of NorthMarq Capital’s San Diego regional office, arranged $76.5 million in financing for a portfolio of office, industrial and multifamily properties. The transaction, which refinanced a CMBS loan, was structured as 23 separate 20-year fully amortizing loans and was arranged by NorthMarq for the borrower through its correspondent relationship with ING. The overall leverage was approximately 60%. The loan being refinanced was a $70 million CMBS loan with a 10-year fixed rate that was closed in Dec., 2005. The borrower chose to refinance the debt early and pay the defeasance cost in order to secure attractive, long-term fixed rate financing. The loans are secured by a geographically diverse portfolio consisting of 23 assets in seven states (Calif., Ariz., Texas, Ohio, Conn., Va., and Fla.), totaling a combined 996,000 sq.ft. The assets consist of nine office buildings, three industrial buildings, six apartment buildings and five retail buildings. Most of the assets acquired by the borrower in the early to mid-1990’s have had an excellent overall track record and are well maintained. “ING did an exemplary job of understanding the various locations and asset mix, delivered the deal as promised, and made the closing process very borrower friendly,” said Hollister, who has financed over two dozen transactions for the sponsor over the last 15 years. “The borrower has a proven system of operating these assets and has kept them very well occupied (95% average) and in good condition.”