NorthMarq Capital completes $8.8 million non-recourse “value-add” office bridge loan on vacant building in Orange County

LOS ANGELES (October 12, 2015) – Joe Giordani, vice president of NorthMarq Capital’s Los Angeles regional office secured a high leverage, non-recourse loan of $8.8 million for a 34,000 square foot vacant office building located in Orange County, California. The transaction was structured with a 2-year interest only term, contains no interest rate cap requirement, is 80 percent loan to cost and had initial funding of 93 percent loan-to-purchase. “This was a pretty standard value-add bridge loan. It had a couple of challenges. First the deal had to close in 30 days for various reasons. Second, the buyer was buying a vacant building and wanted to build-out the entire building's interior with high-end creative tenant improvements before having any leases in place. A spec build for a lender is a big bet,” explained Giordani. “The lender was able to get comfortable due to the buyers experience and business plan. It helped that the buyers had executed this same business plan with great success just a few doors down a few months earlier. The rate was a little higher due to the high leverage nature of the deal but this lender provided exactly what the buyer needed to accomplish their business plan.”