LOS ANGELES, November 28, 2018 – Ory Schwartz, senior vice president/managing director of NorthMarq Capital’s Los Angeles regional office, secured financing totaling $38.40 million for two multifamily properties (consisting of a combined 445 units) located in Northern California. The financings were on behalf of two Tenants in Common, consisting of private investors. NorthMarq arranged financing for the borrowers through its Freddie Mac platform.
Austin Commons, a 209-unit multifamily property located at 50 Austin Avenue in Hayward, California received refinancing of $16.80 million. The transaction was structured with a 10-year, interest-only term.
Gateway Apartments, a 236-unit multifamily property located at 902 Davis Street, San Leandro, California received refinancing of $21.60 million. The transaction was structured with a 10-year, interest-only term.
“These transactions were early refinances of existing Freddie Mac loans that NorthMarq had originated in 2013, with approximately 4.5 years of loan term remaining. The sponsor was concerned of where interest rates would be in 2023 when the loans were scheduled to mature. NorthMarq modeled various scenarios that analyzed refinancing early versus waiting until 2023. Based on the results, Sponsorship opted to move forward and defease the existing loans in order to lock-in today’s attractive financing for the next decade. Additionally, the new loans were full term IO, which will generate more cash flow than the amortizing loans that were paid off.” – Ory Schwartz, senior vice president/managing director
About NorthMarq Capital
NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the U.S, provides debt, equity and commercial loan servicing through offices across the U.S. As a leader in capital solutions through long-term relationships with life companies, CMBS platforms and local, regional and national banks, the company also has a long track record of multifamily loan origination through Freddie Mac, Fannie Mae and FHA/HUD. The company services a loan portfolio of more than $52 billion and has over 300 loan origination experts in regional offices coast-to-coast. For more information please visit www.northmarq.com.
