Dealmaker: NorthMarq Closes $72M for Multifamily Assets

NorthMarq, Minneapolis, closed $72 million for two multifamily properties in California and Massachusetts.

In Milpitas, Calif., Managing Director Dennis Williams and Vice President Tom Wight closed a $59 million non-recourse loan to refinance mid-rise community Ilara Apartments. NorthMarq Analysts Jackie Goldsmith, Anika Sachse-Tiglao and Soraya Rios assisted with the transaction.

NorthMarq arranged the financing through a correspondent life insurance company for sponsor JB Matteson, San Mateo, Calif. The 10-year loan bears a fixed 3.10 percent interest rate with interest-only debt service payments for the full term.

“One of the major benefits of the life company loan was the borrower’s ability to lock the interest rate three months in advance,” said Wight. “This enabled the borrower to eliminate interest rate risk while allowing time for the prior loan’s prepayment penalty to burn off.”

In Lynn, Mass., NorthMarq Vice President Jeff Munoz secured $13 million in construction financing for a 70-unit multifamily development. He structured the transaction as a full-term interest-only loan.

“Despite the pandemic, which has forced many lenders to reduce their exposure to construction projects, we were able to match our clients’ needs with competitive loan terms,” said Munoz. “The greater Boston area continues to be a fundamentally strong multifamily market and has shown resilience through national economic headwinds not only in this pandemic, but in past downturns.”