Dealmaker: NorthMarq Arranges $87M for Multifamily, Office
NorthMarq Capital, Minneapolis, secured $87.3 million to build an apartment property and refinance an office building.
In Everett, Wash., 25 miles north of Seattle, NorthMarq Senior Vice President Stuart Oswald arranged a $66.8 million construction loan for Waterfront Place Apartments. The property will contain 266 units when complete.
The borrower, a joint venture between SeaLevel Properties and Gracorp, locked in a 40-year fixed interest rate of 3.75 percent on a non-recourse loan with no lease-up requirements or completion guarantees for conversion to a permanent loan. The FHA Section 220 program also included a 28-month interest-only construction period.
Construction began this month and the project is expected to be completed in 24 months, Oswald said. He noted the Port of Everett is undertaking a $600 million revitalization. In addition to Waterfront Place apartments, the master plan includes a 142-room boutique hotel scheduled to open in September, amphitheater and a pedestrian bridge with staircase connecting the waterfront to downtown Everett.
The four-story mid-rise building will occupy 1300-1400 West Marine View Drive in Everett.
NorthMarq also secured $20.5 million in acquisition financing for Maryland Trade Tower III in Greenbelt, Md. Senior Vice President Noah Juran closed the deal.
Juran said the buyer contacted NorthMarq to finance the office property after the original lender backed out of the deal and the buyer’s purchase contract was approaching expiration. “Once engaged, we quickly leveraged our national platform to pull together multiple competitive bridge quotes that would provide funds for both the acquisition and ‘good news’ leasing money,” he said, noting the buyer chose a relationship bridge lender to supply the financing.
Juran said the five-year non-recourse bridge loan included three years of interest-only payments and a 30-year amortization schedule.
Built in 1989, the 14-story Class A property sits on a nine-acre parcel.
