Multifamily - Debt

NorthMarq Capital arranges $41 million refinance for Ridgecrest Apartments in Lake Forest, California

LOS ANGELES (May 19, 2014) – Michael T. Elmore, executive vice president/managing director of NorthMarq Capital’s Los Angeles based regional office secured the $41 million refinance of Ridgecrest Apartments, a 240-unit multifamily property located at 21486 Lake Forest Drive, Lake Forest, California. The transaction was structured with 7-year term and 30-year amortization schedule following a 2-year interest only period. NorthMarq arranged financing for the borrower through its seller/servicer with Freddie Mac, who agreed to fund a cash-out mortgage on a 1.25 debt coverage ratio with 2-years interest only based on strong sponsorship and an infill Orange County location.

“Freddie Mac utilized their new index lock to help the borrower hedge a fully leveraged loan on which proceeds were critical to a maturing loan payoff,” said Elmore. “During the underwriting process, cash flow improved and Freddie Mac upsized the loan.”

Northmarq is an industry-leading capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with an open, flexible structure, enabling our team of seasoned professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of over $30 billion, and loan servicing of nearly $70 billion.