NorthMarq Arranges $19M Refi for Seattle Community

The 10-year, fixed-rate loan was given to J.B. Matteson Inc. for the 124-unit Greenhouse Apartments, a LEED Silver-certified property.
Greenhouse Apartments. Image courtesy of NorthMarq

J.B. Matteson Inc. has received $18.5 million in non-recourse financing to refinance Greenhouse Apartments, a 124-unit multifamily property in Seattle.

NorthMarq secured the 10-year, fixed-rate loan with interest-only payments for the full duration, through a correspondent life insurance company.

“Constructed in 2012, Greenhouse Apartments is a LEED Silver certified urban apartment community that focuses on sustainable design with integrated greenspace through extensive landscaping and a rooftop deck with an urban agriculture garden,” Tom Wight, NorthMarq’s vice president, debt & equity, told Multi-Housing News. “This was and opportunity to place low leverage debt with a very strong sponsor in one of the top multifamily markets in the country.”

Located at 3701 S. Hudson St., the Greenhouse Apartments is a sustainable design community that offers one- and two-bedroom units, all boasting luxury features.

“At the sponsor’s request, we approached our correspondent life companies who either have an existing lending relationship or have expressed interest in developing a lending relationship with the sponsor,” Wight said. “We received competitive quotes from every group and ultimately it was a new lending relationship that won with lowest spread and most flexible terms.”

Downtown access

The property offers convenient access to public transportation, such as the Link Light Rail that connects downtown and the airport. It’s also close to numerous green spaces, unique local shops and plenty of restaurants.

Downtown Seattle is less than 20 minutes away, with nearby popular places such as the Seattle Asian Art Museum, the historic Columbia Hotel and Tutta Bella Neapolitan Pizzeria.

“Greenhouse is located in the Columbia City neighborhood of Seattle, in the vibrant historic business district that fronts along Rainier Avenue,” Wight said. “The district is known for small businesses and cultural events along with a year-round farmer’s market. The area includes multiple greenspaces which are easily accessible to residents.”

According to Marcus & Millichap’s Seattle-Tacoma Multifamily Investment Forecast 2019 Outlook, Seattle experienced its strongest year of job growth in 22 years in 2018 and this year was forecast to be among the top job creators in the nation. Companies that have signed new leases in the area in the last 12 months include Facebook, Google and T-Mobile. That has caused many to relocate to the area.

The report shows that Seattle has been one of the strongest single-family housing markets in the nation and more than 12,000 units are expected to be completed this year.

In April, NorthMarq arranged a $16 million Freddie Mac loan to Tidewater Management to acquire Village Manor, a 227-unit community in the western Manhattan suburb of Nutley, N.J.

Joining Wight on this deal was NorthMarq’s Managing Director Dennis Williams with assistance from analysts Anika Comaroto and Soraya Rios.