NEWPORT BEACH (March 26, 2020) – Joe Giordani, managing director of NorthMarq’s Newport Beach office arranged acquisition financing of $18.5 million for a multifamily property located at 6343-6359 Rosemead Blvd in San Gabriel, California. The property is currently run as a motel but will be converted to 184 apartment units. The non-recourse bridge loan was structured with a 3-year interest only term, loan proceeds up to 75 percent Loan-To-Cost, which includes a significant future funding commitment to complete heavy renovations to the property. NorthMarq arranged financing for the borrower through its relationship with a balance sheet bridge lender.
The Federal Reserve cut rates just before the closing due to market uncertainty stemming from the unknown impacts of the emerging Coronavirus outbreak. This signaled a negative shift in the market. Some CLO lenders had started to pull loans. Because NorthMarq advised to work with a balance sheet lender from the start, the client was able to close as planned.
“The sponsor was focused on finding a lender they could truly partner with that would help them navigate through the successful completion of their business plan. This lender was able to offer that via their balance sheet as well as competitive terms for max loan proceeds at a competitive rate on a non-recourse basis,” said Giordani.
Thanks to immediate access to HWY 610, I-210 and I-10, the property is within range of local attractions such as Santa Anita Park, Los Angeles County Arboretum & Gardens, Huntington Library & Gardens, San Garbiel Mission, San Gabriel Mission Playhouse. Nearby higher-educational institutions include Art Center College of Design, Pasadena City College and Los Angeles College of Music.
Apartment amenities include: Carpeted rooms, vinyl flooring, high-speed internet access, air conditioning, heating, smoke-free, cable ready, wheelchair accessible rooms, disposal, microwave, oven, refrigerator. Property amenities include: Surface lot/parking, laundry facilities, BBQ/picnic area, furnished units available, paid utilities, pool, grill and garden.