Dealmaker: Northmarq Completes $62M in Senior Housing, Multifamily Refinances

Northmarq, Minneapolis, refinanced a senior housing community and a multifamily property in transactions totaling $61.9 million.

The Gardens at Town Square
Image courtesy of Northmarq

Stuart Oswald, Senior Vice President and Managing Director of Northmarq’s Seattle office, arranged $33 million to refinance The Gardens at Town Square, a senior housing community in downtown Bellevue, Wash. The 168-unit mid-rise community dates to 1998 and includes independent living, assisted living and memory care.

The 10-year fixed-rate loan included one year of interest-only payments followed by a 30-year amortization schedule. Loan proceeds retired $20.4 million in existing agency debt and returned equity to the borrower.

“This is a well-run community which has maintained an excellent reputation serving the Bellevue seniors community for over two decades,” Oswald said. “This is not a statement pulled from a marketing piece but rather based on personal experience as my parents were residents in one of their other communities for almost ten years.”

Northmarq arranged the financing for borrower and operator ERA Living, Seattle, through its relationship with a correspondent life insurance company.

Northmarq also arranged $28.9 million to refinance Arlington West Apartments in Jacksonville, N.C. Bob Harrington and Paul Whalen, Vice Presidents in the firm’s Miami Lakes, Fla. office, secured the financing. The 14-building, 324-unit community delivered in 2009 at 5049 Western Boulevard in Jacksonville.

Harrington noted the sponsor took advantage of Freddie Mac’s Index Lock option to lock in a 10-year loan at 1.89 percent. “This allowed them to close with a fixed interest rate in the mid three percent range and full-term interest-only,” he said.