Dealmaker: Northmarq Capital Secures $43M to Refi Four Properties

Northmarq Capital, Minneapolis, arranged $43 million to refinance a San Diego retail center and three Texas apartment properties.

Michael Dobbins, senior vice president of NorthMarq’s San Diego office, arranged $30 million to refinance Carmel Mountain Ranch Town Center, a 172,000-square-foot San Diego retail property. He arranged financing through Northmarq’s correspondent relationship with a life insurance company. It carries a fully amortizing 25-year term. 

“This transaction was the third loan the borrower has received from this correspondent life insurance company, who provided a forward commitment,” Dobbins said. “This enabled the borrower to take advantage of a significant drop in interest rates and avoid having to incur a prepayment penalty.”

Northmarq Capital’s Los Angeles office arranged $13 million to refinance a three-property multifamily portfolio in Wichita Falls in north Texas. The portfolio at 3611 and 4515 Maplewood Avenue and 4700 Taft Boulevard consists of 588 units.

Executive Vice President Rob Hervey and Managing Director and Vice President Mark Dodson structured the transaction with a 10-year term and 30-year amortization schedule through a commercial mortgage-backed securities lender.

Hervey said that although a private investor owns the properties, Midwestern State University students occupy units so the school year roll-over in the middle of the refinancing process complicated the transaction. “The lender’s team worked closely with the borrower’s team to have the most current information to avoid significant changes in the terms,” Hervey said. “This situation, along with market volatility, created a huge challenge in closing by the hard existing loan maturity date.”