LOS ANGELES (May 27, 2015) – Robert R. Hervey, executive vice president/senior managing director of NorthMarq Capital’s Los Angeles based regional office negotiated $33.8 million in acquisition/construction financing for Palm Springs Andaz, a 150 key hotel property to be located at Palm Canyon Drive and Alejo Road in Palm Springs, California. The transaction, involving strong cash equity from the sponsors and EB-5 funds, was structured with a 3-year interest only term and 25-year amortization during extension options. NorthMarq arranged financing for the borrower through its relationship with Midfirst Bank. Hyatt Andaz is the flag. “To bring this transaction together, the borrower developed a strong relationship with the city of Palm Springs,” explained Hervey. “They began the process during the recession which generated interest in financing the gap with EB-5 using a qualified regional center. The lender, who is very knowledgeable in high quality boutique hotels, completed the picture. This terrific lender took the time to understand the structure and was patient while the EB-5 vetting process was completed.”
Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq's solid foundation and entrepreneurial approach have built an annual transaction volume of more than $39 billion and a loan servicing portfolio of more than $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq established itself as a provider of opportunities across all major asset classes. For more information, visit: www.northmarq.com.
