Momentum Builds for Multifamily Financing in 4Q2018 as Borrowers Seek Historically Low Rate Locks and Capital Sources Continue to Prioritize Allocations to California Multifamily Assets
San Francisco, CA (November 12, 2018) – Newmark®, the largest independent commercial mortgage banking firm in the U.S., has arranged $29,900,000 in financing for Five55 Pacific, a newly developed, Class-A mixed-use property in Santa Cruz, CA. Completed earlier this year by Swenson Builders, the beach-side apartment community offers 94 luxury apartments over 4 ground-floor commercial spaces, which are currently managed by Woodmont Real Estate Services. Featuring exceptional amenities, Five55 is uniquely positioned in the market as the only new apartment complex within Santa Cruz.
Working on an exclusive basis, Jeff Wilcox and Robert Slatt, Principals, along with Charlie Kokernak, Associate, of Newmark’s San Francisco office, structured the financing as a first deed of trust with Benefit Street Partners. They were able to provide a flexible lending solution that paid off the construction financing, also secured by Newmark, in addition to covering closing costs and returning equity to the borrower. The interest-only loan is limited recourse and features multiple term extension options.
“Newmark worked closely with our team while arranging financing for the entire project, from land acquisition to construction and ultimately through stabilization. Their thorough understanding of a complex project helped get Five55 built, and we couldn’t be more pleased with their execution and guidance.”
– Mike Black, Senior Development Manager
Newmark a privately held company based in San Francisco, is a full service mortgage banking firm with an extensive lineup of correspondent lenders utilizing Newmark’s production, closing and servicing capabilities. Established in 1991, Newmark is currently staffed by over 70 employees in regional offices throughout the western United States. The company’s national servicing platform of $12 billion represents over 1,300 loans located in 42 states. Newmark is rated as a Primary Servicer by Standard & Poor’s and is one of a select few non-banking/non-insurance chartered companies with this designation.