SAN DIEGO (October 23, 2018) – Eric Flyckt, managing director and Wyatt Campbell, vice president, of NorthMarq Capital’s San Diego office, provided $32.894 million in financing for a 138-unit apartment community located in Santa Rosa, California. The garden-style property, built in 2001, benefits from a strong submarket with less than a three percent vacancy rate. This is an attractive and high quality property offering garages, full-size washers/dryers, central HVAC, fireplaces, pool, spa, fitness center, business center, freestanding clubhouse and a low density of 15 units per acre.
During the past two years the property has undergone an extensive interior and exterior renovation including new countertops, cabinet refinishing, stainless-steel appliances, lighting, flooring, interior paint, crown molding, updated fixtures, landscaping improvements, exterior paint, pool, lighting and exterior building upgrades.
NorthMarq provided financing for the borrower as a seller/servicer for Freddie Mac under its Green Advantage program. The 10-year term loan was structured with five years of interest-only payments followed by a 30-year amortization. Freddie Mac’s Green Advantage 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.
The loan proceeds paid off a short-term bank loan which was secured when the borrower purchased the property two years ago. The new loan also facilitated the redemption of institutional equity which Flyckt arranged at the time of acquisition. “Freddie Mac offered the maximum loan proceeds, at the lowest spread in the market and their process during the course of the transaction was smooth and quick,” said Flyckt.
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.