Dealmaker: NorthMarq Secures $75M in Four Transactions

Fortune Square Apartments

NorthMarq Capital, Minneapolis, completed four loans totaling $75.4 million in New Jersey and Illinois.

In New Jersey, NorthMarq Senior Vice President Gary Cohen arranged financing for three properties totaling $59.85 million. He secured $25 million for Mediterranean House Fort Lee, a 19-story building with 306 apartments. The refinance allowed the ownership group to reduce their interest rate by half and returned equity to the partners.

Cohen also secured $7.3 million for 31-unit Class A Fortune Square Apartments in Red Bank, N.J. The property was developed in conjunction with the T. Thomas Fortune Project and sponsor Roger Mumford Homes committed to restoring and preserving the original T. Thomas Fortune house located in front of the apartments. The original T. Thomas Fortune house joined the National Historic Registry as the T. Thomas Fortune Cultural Center.

In Edison, N.J., Cohen arranged $27.5 million to refinance a 346,000-square-foot warehouse/distribution facility. “Our client was seeking a long-term fixed-rate loan and we arranged a 20-year term/25-year amortization with a national life insurance company,” he said.

The firm’s Chicago office arranged $15.6 million for 550 Arlington Apartments in Chicago’s Lincoln Park neighborhood, Senior Vice President Brett Hood arranged the seven-year fixed-rate loan through Freddie Mac, McLean, Va.

The new loan, which included two years of interest-only amortization, recapitalized the recently renovated 91-unit Art Deco building. The property had recently stabilized after a complete gut renovation totaling $40,000/unit that included overhauling all unit interiors, common areas, electrical and plumbing.

Hood noted the transaction represented the sponsor’s first agency execution and the loan was closed just prior to agency spread increases tied with volume caps in early fall. “The nature of Freddie Mac’s execution allowed the spread to be held throughout the underwriting process and ultimately enabled the borrower to benefit from the dropping seven-year U.S. Treasury yield index upon final rate lock,” he said.