Dealmaker: Newmark Arranges $52M for Retail, Office, Multifamily Assets

Newmark, San Francisco, arranged $52 million in financing for retail, office and multifamily properties in Arizona and Washington.

In Mesa, Ariz. Newmark Principal Tim Storey arranged $30 million in permanent financing for Mesa Grand Shopping Center, a 236,000-square-foot Class A asset.

Mesa Grand Shopping Center is 92 percent occupied by Petsmart, Office Max, Michaels and other national and local retailers. Storey said the property has a long history of being an important retail center in metropolitan Phoenix’s east valley.

The asset received a 10-year non-recourse loan from a commercial mortgage-backed securities lender as well as a mezzanine loan. “This transaction had several moving pieces that resulted in a little more structure than normal,” Storey said. “In order to close the loan the borrower required both senior debt and mezzanine debt.”

Newmark also arranged a $13 million loan secured by the five-story Port Gardner office building in Everett, Wash. The 100,000-square-foot property dates to 1929 and includes office and retail space with an adjacent parking annex. Newmark sourced a 10-year fixed-rate non-recourse loan with a 30-year amortization schedule.

In Pullman, Wash., Newmark Principal Demetri Koston arranged $9 million secured by a stabilized 103-unit apartment property. Students at nearby Washington State University occupy most of the property.

The 10-year fixed-rate loan took out the property’s construction financing. “While interest rates have been very volatile recently, Newmark worked with the lender to hold the quoted rate through the due diligence and approval process without being subject to deposits or margin calls,” Koston said.