Northmarq arranges $7.1 million financing of three industrial assets in San Diego, California

SAN DIEGO (October 20, 2021) – Steve Hollister, senior vice president, arranged the $7.1 million refinance of three industrial assets located in San Diego, CA. The transactions were structured with 10-year loan terms on 30-year amortization schedules. The loans were not crossed. Northmarq negotiated the fixed-rate loans for the borrower through its correspondent relationship with a life insurance company. The multi-tenant industrial buildings consist of a total of 185,610 sf. One of the assets is leased to 25 tenants ranging in size from 1,000 sf to 5,000 sf. The other two buildings are each leased to three tenants, ranging in size from 12,700 sf to 70,000 sf. The assets are 100% occupied.

 “The life insurance company that provided these three loans refinanced their existing 10-year loans for the borrower that were scheduled to mature July, 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 90 days prior to, and well in advance of the loan maturities, was very compelling to the borrower. The execution was flawless and provided a win/win for both the borrower and the lender."