Dealmaker: Northmarq Secures $333M for Multifamily
NorthMarq, Minneapolis, secured $332.6 million for multifamily assets in Arizona and New York.
A NorthMarq Debt and Equity Team of Brandon Harrington and Tyler Woodard arranged $315.6 million in financing for a four-property portfolio owned by 3rd Avenue Investments. The portfolio totals 1,368 units and included Lemon & Pear Tree, Riviera Park, Gilbert Greens,and Sahara and Playa Palms.
A national bridge lender offered a 3+1+1 structure and future funding package to 3rd Avenue Investments, which has held the assets for more than 25 years.
“While there was little to no deferred maintenance at the assets, the upside to increase income by way of burning off loss to lease and interior renovations was substantial, which made the transactions a perfect fit for a bridge loan execution,” Harrington said.
Lemon & Pear Tree is located at 1750 S. Alma School Road in Mesa. Built in 1981 its two-bed, two-bath floor plans average 1,043 square feet.
Riviera Park at 125 S. Dobson Road in Chandler dates to 1983 and has mostly two-bedroom, two-bath floor plans averaging 727 square feet.
Built in 1984, Gilbert Greens at 1101 N. Gilbert Road in Gilbert is five minutes from historic downtown Gilbert, which has some of the most popular restaurants and shops in the East Valley.
Elsewhere in Gilbert, Sahara & Playa Palms at 2300 W. San Angelo Street dates to in 1984 and has more than 840 units.
Northmarq also secured $17 million to refinance Overbay Apartments at 217 West Broadway in Port Jefferson, N.Y. Charles Cotsalas, Senior Vice President and Senior Director of Northmarq’s Long Island office, and Ernest DesRochers, Senior Vice President and Co-Managing Director of Northmarq’s New York City office, arranged a 15-year loan with two years of interest-only payments followed by a 30-year amortization schedule for the property.
“The lender, a correspondent life company of Northmarq’s, was quite flexible in meeting the borrower’s short time frame and was able to close despite a myriad of obstacles that would have been problematic, questionable with any other lender,” Cotsalas said.
