Multifamily - Debt


NorthMarq’s Newport Beach office negotiates $240,441,000 refinancing for six-property multifamily portfolio located in three California counties

LOS ANGELES, CALIFORNIA (September 21, 2020) – Michael Elmore, executive vice president/managing director of NorthMarq’s Newport Beach office completed refinancing of $240,441,000 for six multifamily properties. NorthMarq arranged financing for the borrower, Advanced Real Estate Services, Inc (Advanced) through its relationships with Freddie Mac and Fannie Mae. Three of the properties are located in Orange County, two are located in Riverside County and one is located in Los Angeles County. The portfolio contains a total of 1,223 units. The financings generated over $100 million in cash-out proceeds. The refinance proceeds will be used as the initial investment into the $250,000,000 Advanced Fund 20-1. 

“Freddie Mac financed the first five assets for $204.6 million during the initial phase of the COVID 19 crisis and held all of the financial terms without change. Pacific Palms Apartment Homes was subsequently financed by Fannie Mae for $35.8 million once the COVID-19 crisis was well defined and they also held all terms and conditions. Both lenders extended their deep relationships with Advanced Real Estate Services,” said Elmore.  

“We were thrilled to secure such attractive financing even during the peak of the pandemic. We have built a long-term relationship of trust with NorthMarq as well as Freddie Mac and Fannie Mae. With the proceeds from these refinances, we are purchasing multiple properties through our new Fund structure. We are in escrow on three properties, all procured ‘off market.’ We have more than $200 million of fully-discretionary equity to place, so we are aggressively seeking further multifamily acquisition opportunities,” said Richard Julian, President of Advanced Real Estate Services, Inc. (Advanced).

Corona Pointe Resort: The 714-unit multifamily property received financing of $120.9 million. It is located at 3957 Pierce Street in Riverside, California. The transaction was structured with a 10-year term with 5-years of interest only followed by a 30-year amortization schedule. NorthMarq locked in financing at a 2.84 percent interest rate. 

Corona Pointe Townhomes: The 63-unit multifamily property received financing of $14.279 million. It is located at 11511 Magnolia Avenue in Riverside, California. The transaction was structured with a 10-year term with 5-years of interest only followed by a 30-year amortization schedule. NorthMarq locked in the financing at a 2.84 percent interest rate. 

The 5800 Apartment Home: The 149-unit multifamily property received financing of $35.587 million. It is located at 5800 South Street in Lakewood, California. The transaction was structured with a 10-year term with 5-years of interest only followed by a 30-year amortization schedule NorthMarq was able to lock in the financing at a 2.84 percent interest rate.  

Pacific Palms Apartment Homes: The 149-unit multifamily property received financing of $35.85 million. The 2-building property is located at 111 West Orangewood Avenue and 2045 South Haster Street. The transaction was structured with a 10-year interest-only term. NorthMarq was able to secure the financing at a 2.71 percent interest rate.  

Avignon Apartment Homes: The 88-unit multifamily property received financing of $19.825 million and is located at 1361 & 1375 West Valencia Drive and 220 South Basque Avenue in Fullerton, California. The 3-building property resides on 2.53 acres of land. The transaction was structured with a 10-year term with 5-years of interest only, followed by a 30-year amortization schedule. NorthMarq was able to lock in the financing at a 2.84 percent interest rate. 

Washington Place: The 60-unit multifamily property received financing of $14 million and is located at 1311 East Washington Place in Santa Ana, California. The transaction was structured with a 10-year term with 5-years of interest only followed by a 30-year amortization schedule. NorthMarq locked in financing at a 2.84 percent interest rate. 

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.