Newmark Realty Capital Secures $27M

Newmark Realty Capital, San Francisco, arranged $26.9 million for properties in three states.

In San Antonio, Texas, Newmark Vice President Tom Dao arranged $16.7 million in construction financing for the School of Science & Technology. The new facility for Riverwalk Education Foundation will total 67,000 square feet when it opens in the fall. The facility will host 400 students at opening and can expand to enroll another 400 students.

Dao said the five-year loan will remain interest-only until the school pays rent, followed by a 30-year amortization schedule.

Newmark also arranged $6.5 million in financing for 30 acres in Phoenix north of Deer Valley Airport. The subject property has an income stream because the land is currently leased to 17 tenants for storage purposes. All but one of the leases is short-term in nature, which aligned with the buyer’s business plan as the borrower plans to develop a 392,000-square-foot industrial warehouse on the site in the future.

Newmark Principal Adam Parker and Associate Vice President Chad Metzger arranged this acquisition loan through a regional bank. Parker said the bank offered attractive loan terms because it would like to make a construction loan to the sponsor when they are ready to develop the warehouse buildings.

Parker also arranged $3.7 million in financing secured by a 20,200-square-foot retail building in Goodyear, Ariz. Located adjacent to the Abrazo West Valley Campus, the subject property is well positioned to be re-purposed into a medical office building, Parker said.

Parker structured a loan that allowed the borrower to acquire the property using an initial funding. The loan also included a future funding facility the borrower can us to pay for capital expenditures, tenant improvements and leasing commission costs.

A regional bank supplied the financing.