TODAY’S DEALS: NorthMarq Capital Arranges $21,700,000 Sale of 578-Unit Rental Community, and Other Transactions

By Anuradha Kher, Online News EditorMadison, Wis.–NorthMarq Capital’s Chicago office has arranged the sale of the 578-unit New Fountains Apartment Community (pictured) on behalf of the seller for $21,700,000. New Fountains is located in Fitchburg, Wis. in the Southwestern submarket of the greater Madison, Wis. metro area. The buyer purchased the property at a 7.25 percent cap rate on actual revenue and will be performing an extensive renovation and repositioning of the asset. NorthMarq began working with the seller to refinance the property, but DeKruiff uncovered a unique market opportunity for the sale instead. A10 Capital’s Lending Group Provides Over $4M to Finance Distressed Debt PurchaseBoise, Idaho–A10 Capital’s lending group recently provided $4.6 million to finance a distressed debt purchase.  A10’s customer is an opportunity fund that bought the defaulted loan, with a $22 million face amount, for approximately $10 million. The acquired note is secured by a very large multifamily complex with over 85 percent occupancy. The purchased note was in default because the property was over-leveraged by the current owner.The distressed debt financing provided by A10 Capital enabled the opportunity fund to leverage their returns and magnify their projected IRR on the purchase. The transaction was structured on a non-recourse basis to the general partners of the fund. A10’s financing also increased the opportunity funds purchasing power by providing a majority of the capital to the transaction.