DALLAS (October 20, 2016) – Steve Whitehead, senior director of NorthMarq Capital’s Dallas-based regional office, and Rob Hervey, executive vice president/senior managing director of NorthMarq Capital’s Los Angeles-based regional office collaborated to arrange both a senior non-recourse construction loan of $21,655,000 and a mezzanine loan of $5,477,000 for Gather Uptown, a 124 unit/405 bed ground up student housing development at East Carolina University in Greenville, North Carolina. The transaction was structured with a 3-year interest only term. NorthMarq arranged financing for the borrower through its relationship with a life insurance company.
“The project has a great location in the entertainment district of Greenville and it is walkable to the ECU campus,” said Whitehead.
Whitehead and Hervey also secured the floating-rate refinance of $22,600,000 for the Gather on Southern, a 136-unit/435-bed student housing property located across the street from the University of Memphis campus in Memphis, Tennessee. The transaction was structured with a 5-year term with 1-year interest only followed by a 30-year amortization schedule. NorthMarq arranged the non-recourse financing for the borrower through its correspondent relationship with a life insurance company.
“The borrower was looking for a low-rate non-recourse bridge loan to take out the existing construction financing,” said Whitehead. “This project was 100 percent leased and at the steps of the University of Memphis campus. One of our life insurance companies used their bank to tailor the loan for the client.”