Dealmaker: NorthMarq Secures $26M for Two West Coast Properties

NorthMarq Capital, Minneapolis, arranged $26 million to refinance two west coast properties.

Eric Flyckt, senior vice president and managing director of NorthMarq Capital’s San Diego office, secured $18 million to refinance Mission Pacific Apartments, a 132-unit San Diego property. He said the 10-year life company loan comes with a 30-year amortization schedule.

“NorthMarq presented this opportunity to several of the most active and aggressive permanent lenders in the market,” Flyckt said, noting that Mission Pacific Apartments maintains a strong historical occupancy and is very well maintained. “A major life insurance company distinguished itself from the other lenders by offering a very competitive spread of 148 basis points and locking the rate at application.”

Flyckt said the sponsor will re-invest excess loan proceeds into the property through an “extensive” interior and exterior renovation program.

NorthMarq Executive Vice President and Managing Director Michael Elmore and Vice President Mark Dodson also negotiated $8 million to refinance Sunnyslope Shopping Center, a 94,000-square-foot retail property in Salem, Ore. They structured the commercial mortgage-backed securities transaction with a 10-year term with a five-year interest-only period followed by a 30-year amortization schedule.

Elmore said this represents the third time NorthMarq arranged financing on this property. “On this occasion, we were able to meet the client’s goals to refinance with five years interest-only, with substantial cash-out proceeds and a large-funded escrow for a short-term major tenant,” he said.

Roth’s Fresh Markets represents the property’s major tenant.