Dealmaker: NorthMarq Capital Secures $58M

NorthMarq Capital, Minneapolis, secured $58 million for retail, multifamily and mixed-use assets.

John Marshall, vice president in NorthMarq’s Los Angeles regional office, arranged $19.6 million in joint-venture equity and bank financing for a single-tenant 24 Hour Fitness in Highlands Ranch, Colo. The financing gave the borrower 97 percent of the capital it needed to execute its business plan.

Marshall raised $5.5 million in joint-venture equity in addition to $13.7 million in bank financing. A joint-venture partner provided 90 percent of the project equity and acquisition, leasing and asset management fees.

“There is plenty of capital chasing contrarian bets in the retail space for best-in-class operators,” Marshall said.

In Sandy Springs, Ga., NorthMarq Senior Vice Presidents Brett Hood and Jeff Frankel arranged $23.5 million in acquisition financing for 250-unit multifamily property The Celebration at Sandy Springs. The permanent floating-rate 10-year loan included five years of interest-only payments followed by a 30-year amortization schedule. The financing was executed through the Freddie Mac Green Advantage adjustable-rate mortgage program.

“The sponsor’s business plan is to invest an additional $7,000 per unit post-closing for interior unit and common-area upgrades,” Hood said. “Freddie Mac’s ARM program allowed the sponsor to maximize loan proceeds, pay a lower initial coupon based over LIBOR and reduce interest rate exposure through a third-party cap, all while offering prepayment flexibility after achieving the anticipated value-add proposition.”

NorthMarq Senior Vice President Susan Branscome also secured $14.9 million for Linden Pointe, a 120,800-square-foot mixed-use property in Cincinnati, Ohio. A commercial mortgage-backed securities lender supplied a 10-year loan with two years of interest-only payments followed by a 30-year amortization schedule.