Dealmaker: NorthMarq Secures $79M for Multifamily, Industrial

NorthMarq Capital, Minneapolis, secured $79.3 million in financing for apartment and industrial properties in Colorado and California.

The firm arranged $33.3 million in construction financing for Patriot Park Apartments in Colorado Springs, Colo. Vice President Jeff DeHarty secured the regional bank financing for property developer Goodwin Knight, Colorado Springs. The 258-unit market-rate property occupies 8.8 acres north of Platte Avenue and west of Powers Boulevard.

The seven-year fixed-rate facility included three-year interest-only and flexible prepayment provisions.

DeHarty noted the greater Rustic Hills submarket has not seen any new 50-plus unit multifamily community additions since 2008.

Vertical Ventures, Walnut Creek, Calif., received a floating-rate loan with two years of interest-only payments.

“The new financing facility both reduced borrowing costs and provided additional capital needed to fully stabilize the project,” said Prouty. “The borrower will continue to improve spaces for tenants drawn to the campus-like setting in south San Jose, an attractive alternative to the more costly and undersupplied downtown market.”

NorthMarq also brokered the sale of 225-unit Maravilla Apartments in Glendale, Ariz. Keller Investment Properties LLC, Layton, Utah, purchased the 225-unit asset from Renue Properties of Scottsdale, Ariz. for $37 million.

NorthMarq Multifamily President Trevor Koskovich, Vice President Jesse Hudson and Executive Vice President Bill Hahn represented both seller and buyer in the transaction.

“Glendale continues to grow and expand with an influx of industrial jobs and single-family rental development,” Koskovich said. “In 2018 there has been more new construction units delivered in the west valley than between 2010 to 2017 combined. New job opportunities in construction and logistics industries coupled with Grand Canyon University’s growing presence and the development of entertainment centers like Westgate City Center created an economic boom for the area.”

Located at 13621 West Glendale Avenue, Maravilla Apartments is east of Luke Air Force Base.