Dealmaker: NorthMarq Secures $42M for Multifamily
NorthMarq, Minneapolis, negotiated $42.1 million in financing for New Jersey and Illinois multifamily properties.
In North Arlington, N.J., NorthMarq Senior Vice President Robert Ranieri secured $10 million in construction financing for six-story apartment building Opus.
Opus will have 49 units when completed. A local bank supplied the 18-month interest-only loan.
“This transaction was started pre-COVID, but we were able to get the loan approved and closed during the pandemic,” Ranieri said. He noted Opus will draw tenants from the area as well as people who currently reside in New York City and would like a lower-density housing option.
In Chicago, NorthMarq Senior Vice President Brett Hood secured $15.9 million in combined agency debt to recapitalize two apartment properties in Chicago’s Old Town and Logan Square neighborhoods. Freddie Mac, McLean, Va., structured the financing as two separate loans of $8.5 million and $7.4 million. Both loans came with a sub-3.00 percent fixed-rate coupon for seven years with interest-only payments throughout.
The collateral encompasses 94 units with in-place average rents qualifying as “mission-driven” under the agency’s affordability directive.
Subject property 2420 N Kedzie dates to the 1920s and received a gut renovation in 2016. The property has 53 studio and one-bedroom units. The other asset, 1220 N LaSalle, was built in the 1960s with 41 one- and two-bedroom units. It is currently undergoing significant exterior renovations.
“The sponsor elected to index lock early in the process, completely eliminating interest rate risk since Freddie Mac holds their spreads throughout the term of the application,” Hood said.
In Joliet, Ill., NorthMarq Senior Vice President Sue Blumberg and Vice President Kevin McCarthy collaborated to arrange the $16.29 million refinance of 134-unit Park Tower Apartments.
The borrower, an Evergreen Residential affiliate, received a fully-amortizing 35-year loan through NorthMarq’s in-house FHA/HUD team.
