Dealmaker: Northmarq Secures $36M in California

Northmarq, Minneapolis, secured $36.1 million for California mixed-use and flex properties.

Opera Plaza, San Francisco.

In San Francisco, Northmarq Senior Vice President Dan Baker, Vice President Briana Harney and Senior Investment Analyst Jackie Goldsmith arranged the $20 million refinance of mixed-use property Opera Plaza.

Built in 1982, Opera Plaza contains 22,680 square feet of office space and 72,540 square feet of retail space with 450 condo units above that were not part of the security. Located at 601 Van Ness Avenue, Opera Plaza is based on the idea of an urban village providing residential and commercial space in a high-density urban area.

Opera Plaza residents, customers and tenants are within walking distance of the War Memorial Opera House, Herbst Theatre, Davis Symphony Hall, Orpheum Theatre, Brooks Hall and the Civic Auditorium. The Civic Center’s government offices and downtown San Francisco and the Financial District are minutes away.

Retail tenants include Max’s Opera Café and the San Francisco Neighborhood Theater Foundation. Office tenants include Pacific Union Development Co., The Hand Center of San Francisco, San Diego Gas & Electric and Merola Opera Program.

Opera Plaza received a 15-year loan from a national bank with a 30-year amortization schedule.

“Northmarq was able to secure a non-recourse, fixed interest rate loan with the last 10 years open at par, which was a priority for our client,” Baker said.

In San Diego, Northmarq arranged a $16.1 million bridge loan for 10965-10995 Via Frontera, a value-add flex property.

Aaron Beck, Managing Director of Northmarq’s San Diego regional office, secured the non-recourse bridge financing through a regional bank.

“This was a sale-leaseback transaction involving a new lease with the primary tenant, which added immediate value to the asset at closing,” Beck said. “The floating-rate bridge financing provided the borrower with a majority of the capital for the exterior renovations and tenant improvements to satisfy the business plan.”

Beck noted the loan came with interest-only payments, minimal prepayment premium and extension options.