Dealmaker: NorthMarq Capital Arranges $68M in California, New York

NorthMarq Capital, Minneapolis, arranged $68.4 million for three properties in California and New York.

Michael Elmore, executive vice president and managing director of NorthMarq’s Los Angeles office, arranged $27.8 million to refinance Newport Center Medical Office Buildings Three and Four, a medical office property in Newport Beach, Calif.  

Elmore structured the 10-year loan with three years of interest-only payments followed by a 30-year amortization schedule. “The life company lender on these assets accommodated the borrower’s request to recapitalize these early to take advantage of a low coupon rate lock,” he said. “The lender also provided three years of interest-only payments and cash-out.”  

In southern California, NorthMarq Executive Vice President and Senior Managing Director Robert Hervey secured $29.8 million in acquisition financing for two single-tenant warehouse buildings with a combined 569,000 square feet of rentable space in American Canyon, Calif. The 10-year life company loan has a 30-year amortization schedule.  

Hervey said the same non-credit tenant occupies both buildings, which created the challenge of tenant exposure in a smaller industrial market. “[But] the borrower is strong and experienced in owning and operating single-tenant industrial buildings,” Hervey said. “This lender likes high-quality industrial properties and has an existing relationship with the borrower in another market.”  

On Long Island, NorthMarq Senior Vice President and Managing Director Ernest DesRochers and Senior Vice President and Senior Director Charles Cotsalas arranged $10.8 million from a national bank to refinance 425 Broad Hollow Road, a 112,000-square-foot Melville, N.Y. office property. The five-year loan amortizes over 30 years. The loan included both a permanent piece and an interest-only facility for future improvements.  

“The credit facility will be used to reposition the asset,” DesRochers said. “Planned work includes extensive common area and tenant improvements.”