Dealmaker: NorthMarq Capital Secures $175M for Office, Retail
NorthMarq Capital, Minneapolis, secured $175 million in construction and refinance loans for assets in Arizona and Nevada.
The development includes a three-story Class A office building totaling 356,000 square feet and a manufacturing building totaling 261,000 square feet. A bank provided the loan and an insurance company provided the mezzanine equity.
The campus will be part of Park Place, a 180-acre planned community developed by the Douglas Allred Co., San Diego, in one of Phoenix’s fastest-growing employment corridors. The Douglas Allred Co. has completed eight Class A speculative office buildings in the park since 2007. The fully leased assets total more than 635,000 square feet.
The campus will serve as Orbital ATK’s Launch Vehicles Division headquarters upon delivery next year.
Flyckt said his firm sourced a single construction lender that did not require pre-closing syndication and an equity investor that would finance a large project with both office and manufacturing components. “We were able to secure interest from several groups who offered competitive terms and were attracted to this project due to Orbital ATK’s financial strength, the strong location in a very healthy market, the quality of the buildings and the Douglas Allred Company’s expertise and solid track record of building and managing similar projects throughout the Phoenix area and in southern California.”
In Las Vegas, NorthMarq Vice President Jordan Johnson arranged $21.75 million in acquisition and construction financing for Southern Highlands Marketplace Pad, a 6,560-square-foot retail property at 10600 Southern Highlands Parkway. The high leverage transaction was structured with a one-year interest-only term.
Johnson said the site received an 85-plus percent leverage construction loan. “The pad was 100% pre-leased prior to closing of the construction loan,” he said. “This option presented the borrower with control of the deal as they didn’t have to find a mezzanine or equity component to close on the land in their short time period to close the deal.”
