Dealmaker: NorthMarq Capital Secures $41M
NorthMarq Capital, Minneapolis, secured $41.3 million to refinance three retail properties in California and Nevada and a multi-state restaurant portfolio.
NorthMarq executive vice president Michael Elmore and Senior Vice President David Blum secured $26 million in life company funds to refinance Cal Oaks Plaza, a 176,000-square-foot Murrieta, Calif. asset. They structured the fixed-rate transaction with a fully amortizing 25-year term with minimal impounds.
Albertson’s grocers, Reading Theatre and Chili’s represent the property’s major tenants. A Target shadow-anchors Cal Oaks Plaza.
In Elk Grove, Calif., near Sacramento, NorthMarq Vice President Blake Melstrom arranged $4.2 million to refinance Laguna Palms. The life company loan carries a 15-year term and 25-year amortization schedule. The 24,000-square-foot property’s major tenants include a post office and a Goodwill Industries center.
“The subject is shadow-anchored by Target, but most of the tenants located at the subject consisted of local ‘mom-and-pop’ businesses,” Melstrom said. “Although there was a potential for significant tenant rollover during the first two years of the loan term, the lender offered a 15-year fixed-rate, nonrecourse loan.”
Melstrom also arranged $3 million to refinance Durango Plaza, a 42,000-square-foot Las Vegas retail property. “The subject is a retail center that includes a gas station and oil-change facility,” he said. “NorthMarq Capital represents a life insurance company lender that became comfortable with the risk associated to the auto-related tenants due to mitigating factors such as a fully amortizing loan on a low-leverage request.”
Working from the firm’s Miami office, NorthMarq Vice President Robert Bhat arranged $8.12 million for borrower Orion Venture XII North LLC. GE Capital provided the three-year interest-only loan.
Five restaurants secure the loan: two Illinois Bakers Crusts, a Virginia T.G.I. Friday’s, a Missouri St. Louis Bread Co. and a Shoney’s in Texas. “This portfolio contains well-located properties with strong restaurant tenants and lengthy lease terms,” Bhat said.
GE Capital provided a nonrecourse three-year loan with a floating rate below 4 percent, even though the portfolio includes properties in four different states, Bhat said.
