NorthMarq Arranges $63.9M Fannie Mae Loan with Prepayment Reduction
- Jan 18, 2013
Riverside, Calif.—Dennis Williams, senior vice president/managing director of NorthMarq’s San Francisco Regional office, arranged first mortgage refinance of $63.9 million for Esplanade at Riverwalk, a 588-unit market-rate multifamily community located at in Riverside, Calif.
Financing was based on a 10-year term and a 30-year amortization schedule. NorthMarq arranged this financing for the borrower, Sequoia Equities, through its affiliate AmeriSphere Multifamily Finance LLC, a Fannie Mae DUS lender.
“We negotiated a prepayment penalty reduction with the existing lender and provided a Fannie take-out loan with an improved rate,” Williams says. “The borrower was able to achieve a substantial reduction of debt expense and the lender obtained a quality loan with exceptional sponsorship.”
Venture West arranges two acquisition loans for Costa Mesa assets
Costa Mesa, Calif.—Venture West Funding Inc. has arranged two loans totaling $20.2 million for the purchase of two apartment buildings located in Costa Mesa, Calif. Both loans were arranged through CapitalSource for Richard Julian, principal of Advanced Real Estate Services (ARES), a client of Northmarq Capital.
The two assets total 158 units and are located at 2000 Parsons Street and 126, 131, 161 E 18th Street. Together they were purchased for $32.5 million. ARES plans a complete rebranding of the assets.
“Our plan is to upgrade the properties to attract the young professionals who work in the area. We plan to capitalize on the properties’ mid-century architecture to create an environment that feels like a boutique hotel. There is a high demand for apartments with unique design that are well-located,” says Paul Julian, director at ARES.
Vitus Groups buys affordable asset in Portland
Portland, Ore.—Vitus Group has announced plans to acquire St. Johns Woods, a 124-unit affordable housing asset, from Home Forward for $8.25 million. The Portland property receives project-based Section 8 rent assistance from HUD for all units. The subsidy supplements rents, which are set at 30 percent of a household income.
“We are pleased to pass the stewardship for this community resource to such a fine affordable housing organization,” says Harriet Cormack, Home Forward’s board chair. “This is excellent news for the long-term health of St. Johns Woods, as we have been challenged to meet all of the property’s capital needs given our financing.”
“The renovation scope of work will be prepared once the Contract for Purchase has been executed and the due diligence phase is underway. Vitus’ approach with the properties that they acquire and renovate is to address needed building system improvements, increase energy efficiency, renovation and maximization of the community and common areas and modernization of the interior units” says Sara Fay, director of Vitus Group.