Newmark Realty Capital Secures $48M

Newmark Realty Capital, San Francisco, arranged $47.85 million for Arizona and California office, mixed-use and hotel assets.

In Phoenix’s Camelback Corridor, Newmark Principal Tim Storey secured $23.75 million for Valley Commerce Center, a 217,000-square-foot property with two four-story office buildings. The non-recourse loan gave the borrower funds to acquire the property and Storey negotiated additional funds for cap ex and tenant improvements/leasing commissions.

Developed in 1984, the property has received more than $6 million in recent capital improvements.

Newmark also arranged $13.5 million for Sunrise Residences in Fairfield, Calif. The sponsor repositioned a former office park into a mixed-use property with 78 apartment units and six retail units. The retail portion accounts for 15 percent of total square footage.

Murphy Osborne, Vice President in Newmark’s San Francisco office, placed the loan with a correspondent insurance company, which he said provided better overall structure to meet the sponsor’s investment objective than competing banks, credit unions and agencies that quoted the deal. The eight-year loan came with a 30-year amortization schedule.

In South Lake Tahoe, Calif, the firm placed $10.6 million in financing for the Station House Inn. The Best Western-flagged hotel includes 96 rooms in three two-story buildings and a fourth building that houses a restaurant and a bar. The hotel is within two blocks of the beach area and the Stateline South Lake Tahoe entertainment and dining area.

Newmark Principal Jeff Wilcox and Associate Charlie Kokernak arranged a three-year non-recourse loan through a bridge lender that enabled the sponsor to reposition the asset as a boutique destination hotel with onsite dining and seasonal offerings.