Dealmaker: NorthMarq Arranges $105M for New York Mixed-Use

The Agora Building

NorthMarq, Minneapolis, arranged $105 million for New York mixed-use properties.

NorthMarq Senior Vice Presidents Charles Cotsalas and Robert Delitsky arranged $42 million for The Agora Building, a six-story office and retail building at 1556 Third Avenue.

Nationwide Life Insurance Co., Columbus, Ohio, financed the transaction.

Borrower Muss Development, Queens, N.Y. has owned the 70,000-square-foot Agora Building for more than 15 years.

“[Muss Development] has done a great job positioning the Agora Building to meet tenant demand in the market,” said Delitsky. “This is one of the few buildings that allows local commercial tenants to service their customer base.”

Cotsalas also collaborated with NorthMarq Senior Vice President Craig Bjornsund and Vice President Bryan Wylie to arrange a $63 million permanent-fixed loan for a six-story, 105,000-square-foot office and retail building at 622 Broadway.

A life insurance company supplied the 12-year loan with three years of interest-only payments followed by a 30-year amortization schedule at 3.39 percent. The loan gave the borrower significant cash-out, prepayment flexibility and the right to transfer the property to a third party without changing the loan terms.

“The borrower was extremely sensitive to any recourse and NorthMarq secured a non-recourse, entity-only financing,” said Cotsalas.

The borrower has owned the cast-iron building for more than 35 years; it will soon undergo roof, sidewalk and building entrance improvements. The subject property is fully occupied by tenants including Best Buy, footwear retailer Genesco Partners and video game publisher Take-Two Interactive.