NorthMarq’s San Diego office completes $10,020,000 refinance of an office and industrial building in San Diego, California

SAN DIEGO, CALIFORNIA (April 23, 2021) –Steve Hollister, senior vice president of NorthMarq’s San Diego and Boise offices, arranged the $10.02 million refinance of an office and industrial building located in San Diego, California. The transactions were structured with 10-year loan terms on a 30-year amortization schedule. 

NorthMarq negotiated the fixed-rate loans for the borrower through its correspondent relationship with a life insurance company. The multi-tenant industrial building is 99,340 sq. ft. and 100 percent leased to four tenants. It has a 27' clear height, 29 truck doors and all-concrete parking. The multi-tenant office building is a 54,496 sq. ft., 2-story, building that is 90 percent leased to 16 tenants.  

“The life insurance company that provided these two loans refinanced their existing 10-year loans for the borrower that matured in November 2021 and January 2022,” said Hollister. “Given that the life company held the maturing loans on their books, they were able to provide a 25% discount on the yield maintenance prepayment penalties. Combining this with excellent interest rates and 30-year amortizations on the new loans, along with the ability to lock the rates well in advance of the loan maturities, was very compelling to the borrower. The rates were locked in early November 2020. The loans closed at rates that were much lower than the current market rates at that time. The execution provided a win/win for both the borrower and the lender.”