SAN DIEGO (August 14, 2018) – Eric Flyckt, managing director and Wyatt Campbell, vice president, of NorthMarq Capital’s San Diego office, provided $22.696 million in financing for an 88-unit apartment community located in Novato, California. The property, built in 2000, benefits from a strong submarket with less than a three percent vacancy rate, significant barriers to entry, a low density of 14 units per acre, bay and nature preserve views, quick freeway access to Highway 101 and close to schools and shopping. This area of Marin County possesses an average household income in excess of $125,000. This is an a attractive and high quality property offering garages, full-size washers/dryers, fireplaces and vaulted ceilings in the top floor units, pool, spa, fitness center and freestanding clubhouse.
NorthMarq provided financing for the borrower as a Fannie Mae DUS lender. The 10-year term loan was structured with five years of interest-only payments followed by a 30-year amortization. Fannie Mae’s Green Rewards program allowed for a reduced interest rate and higher loan proceeds in exchange for property improvements resulting in energy or water savings. The borrower will be completing water efficiency upgrades at a cost of $301 per unit to qualify for the Green Rewards program.
“Fannie Mae’s Green Rewards financing for this property offered the maximum loan proceeds and lowest rate available in the market at a fixed rate below 4.5 percent,” said Flyckt. “This allowed the borrower to pay off a bridge loan from their bank. The borrower is performing an extensive renovation, the scope of which consists of installing central HVAC, adding in-unit washers/dryers, replacing windows, exterior painting and lighting and signage upgrades. Interior improvements comprise new cabinets, granite countertops, new light and plumbing fixtures and new flooring. While most of the exterior work is complete, approximately one-third of the unit interiors remain to be renovated.”
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 over 300 mortgage banking professionals in regional offices coast-to-coast and services a loan portfolio of more than $52 billion. In select markets, the company offers multifamily and manufactured housing investment sales through NorthMarq Multifamily. 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. For more information please visit www.northmarq.com.