Dealmaker: Newmark Arranges $85M for Multifamily, Medical Offices
Newmark, San Francisco, arranged $85 million in financing for industrial and medical office space in California and Arizona.
Newmark Vice President Brian Bonipart and Associate Abby Kemp arranged $62 million in fixed-rate financing for the newly constructed 624 Yale Apartment Building in Seattle. They placed the 10-year loan with a Newmark correspondent life insurance company lenders, which funded the loan at receipt of Certificate of Occupancy.
“The borrower was looking to buy out his institutional equity partner,” Bonipart said. “He was concerned about rising interest rates impacting his business plan. He asked us to survey the market for a lender that could close on a permanent loan at Certificate of Occupancy.”
Bonipart said most lenders needed the property at least 50 percent leased. “But we were able to find a life insurance company that was familiar with the market and was able to close at Certificate of Occupancy,” he said.
Located in South Lake Union directly off Interstate 5, the two-building high-rise community includes 204 new studio, one- and two-bedroom units with one ground floor retail suite.
Newmark also secured a $15 million construction-to-takeout loan for a 36,000-square-foot medical office building in Perris, Calif. Principal Mark Ritchie and Associate Jasmine Polson worked with sponsor Capital Partners Development Co., Rancho Cordova, Calif., which specializes in build-to-suit projects for government entities and private-sector clients.
Ritchie and Polson arranged a 100 percent loan-to-value credit tenant lease financing through a correspondent life company. Upon completion, the building will be fully leased to Riverside County for its Riverside University Health Systems Behavioral Health Group.
In Phoenix, Ariz., Newmark Principal Adam Parker and Associate Vice President Chad Metzger arranged an $8 million loan secured by two industrial warehouse buildings within the Papago Industrial District.
Parker and Metzger arranged the acquisition/rehab loan through a debt fund. The 153,900-square-foot asset was 66 percent occupied at closing due to a tenant’s departure a few months prior to close.
The collateral’s submarket is experiencing low industrial vacancy, making the asset a candidate for a value-add business plan. Parker said the borrower plans to make capital improvements to the building, lease the vacant space and increase the existing tenants to a market rental rate. The team structured a loan that allowed the borrower to acquire the property using an initial funding. The loan also included a future funding facility which the borrower can use to pay for capital expenditures, tenant improvements and leasing commission costs.
