Dealmaker: NorthMarq Arranges $54M for Multifamily, Retail

NorthMarq, Minneapolis, arranged $54 million for multifamily and retail assets in Washington and Kentucky.

Vice President Jake Leibsohn and Managing Director Ron Peterson arranged a $43.5 million construction loan for the ground-up development of 622 Rainier, a 206-unit multifamily property in Seattle’s Judkins Park neighborhood. Trent Development, Hatteras Sky and Cresset-Diversified Opportunity Zone Fund II are developing the Class A property.

A life insurance company provided a 12-year construction-to-permanent loan with four years of interest-only payments followed by a 30-year amortization schedule.

“Construction lenders have certainly pulled back on financing projects in the core of Seattle since the start of COVID; however, well-thought-out projects with good sponsors, such as 622 Rainier, are still able to attract competitive financing terms,” Leibsohn said.

622 Rainier will occupy a 0.75-acre site near downtown Seattle’s central business district. SoundTransit’s Judkins Park Station is scheduled to open one-half mile from the property in 2023. The property will participate in Seattle’s Multifamily Tax Exemption program by dedicating 20 percent of units to workforce housing.

In Louisville, Ky., NorthMarq Senior Vice President Randall Waddell arranged $10.5 million in acquisition financing for Freys Hill Retail Center. The 58,725-square-foot asset at 10220 Westport Road in Louisville dates to 2003. PetSmart anchors the property; other tenants include Half Price Books, Party City and Starbucks.

The 10-year fixed-rate loan included two years of interest-only payments. NorthMarq arranged the financing for buyer Compass Capital LLC of Lexington, Ky., through its relationship with a local bank.