Dealmaker: NorthMarq Capital Arranges $62M in Three States

NorthMarq Capital, Minneapolis, arranged $61.6 million for retail, multifamily, office and hotel assets in three states.

In San Jose, Calif., NorthMarq Senior Vice President Dennis Sidbury and Senior Managing Director Robert Hervey secured $10 million in life insurance company funds to refinance Almaden Square, an 89,000-square-foot retail property. The 10-year loan included a 25-year amortization schedule.

Hervey said Toys R’ Us and World Market represent the property’s major tenants.

“The key to this transaction was finding a real estate-focused lender who could get their arms around short remaining lease terms without major structure in the financing,” Sidbury said. “Fortunately the property is well located and the loan-to-value ratio is conservative. Additionally, the owners are strong and experienced.”

In Las Vegas, NorthMarq Managing Director Scott Monroe secured $26.2 million through the firm’s FHA/HUD platform to refinance 336-unit St. Andrews Apartments.

Monroe and NorthMarq Capital Vice President Jerry Peterson also negotiated $12 million to refinance Corporate Center Building G, a 47,500-square-foot office property on West Sunset Road in Las Vegas. A private equity source supplied a 4-year interest-only loan.

In Phoenix, NorthMarq Vice President Aaron Beck and Senior Vice President Steve Hollister arranged a $13.4 million bridge loan for a 200-room hotel. The property will be reflagged in the near future.

Beck and Hollister structured the loan with a floating rate and full-term interest-only payments.

“The property is well-located within the Phoenix market with significant redevelopment in the immediate area,” Beck said. “The new brand will maximize the property’s potential and take advantage of the increasing popularity of this submarket.”

Hollister noted that the loan structure allows for a future property improvement plan and additional earn-out dollars once certain income performance hurdles are met. “[This allows] the borrower to increase proceeds after the flag conversion has taken place and the business plan is fully executed,” he said. “The lender was reasonable and flexible in working through issues related to the flag conversion and the cyclical nature of the Phoenix hospitality market.”