NorthMarq Capital Secures $68M for Multifamily Assets

NorthMarq Capital, Minneapolis, secured $67.5 million for multifamily communities in Dublin, Calif. and Lakeland, Fla.

In California, a team led by Managing Director Dennis Williams and Vice President Tom Wight arranged a $31.5 million permanent loan for Tralee Village Apartments, a 130-unit Class A multifamily community.

Williams said the tight timing of the ‘best-and-final’ bidding process meant that the borrower, JB Matteson Inc., San Mateo, Calif., needed real-time information on the acquisition debt. NorthMarq provided the borrower with multiple life company quotes within 24 hours of its request. When the seller selected JB Matteson to buy the asset, NorthMarq provided an executable term sheet from PPM Finance, Chicago, within one business day.

The non-recourse, 55 percent loan-to-value loan included interest-only payments for the full seven-year term and a 3.60 percent interest rate (quoted as a spread of 140 basis points over the seven-year U.S. Treasury). “The borrower will benefit from the loan’s flexible prepayment schedule of four years of yield maintenance followed by 2 percent in year five, 1 percent in year six and par in year seven,” Williams said.

Tralee Village Apartments is JB Matteson’s sixth San Francisco Bay-area multifamily acquisition. The property is close to Hacienda Business Park and Bishop Ranch, two of the Bay Area’s largest business parks, as well as Stoneridge Mall, Hacienda Crossings, Dublin Place, Persimmon Place and Rose Pavilion shopping centers.

In Lakeland, Fla., NorthMarq Senior Vice President and Managing Director Robert Hernandez negotiated a $36 million loan through NorthMarq’s Fannie Mae platform for 312-unit Ariva Apartment Homes. The loan was structured with a 10-year term on a 30-year amortization schedule.

“Loan amount, spread and previous performance with our Fannie team won the deal for Fannie Mae,” Hernandez said. “The ability to lock rate and close at 75 percent physical occupancy and 90 percent leased, without stabilized operating history, was also a major factor in the transaction.”