NorthMarq Obtains $5.92M Mortgage for Property that is Brought Out of Foreclosure
- Mar 30, 2010
Orlando, Fla.– Frank Relihan and Jason Smith, vice presidents of NorthMarq Capital’s Washington, D.C. Regional office, arranged first mortgage financing of $5.92 million for the Riverfront Apartments, a 356-unit former tax credit multifamily complex.
Financing was based on a 10-year term with two-years interest-only followed by a 30-year amortization schedule. The mortgage was arranged for a Southeast-based borrower by NorthMarq through its seller-servicer relationship with Freddie Mac.
According to Relihan, the transaction was a former tax credit/Florida Housing Bond deal that had gone into default and that the borrower bought out of foreclosure. The property was not fully stabilized at 85 percent leased.
However, Freddie was comfortable with the debt level and plans to spend $2,000 per unit in upgrades over the next 12 months, notes NorthMarq. “This was a complicated deal in a complicated market, and Freddie saw the true value of a good sponsor and a realistic real estate loan,” says Relihan.