Dealmaker: NorthMarq Closes $77M for Office, Multifamily

MBA NewsLink Staff

January 28, 2019


NorthMarq announced nearly $77 million in financing deals for apartment properties in Arizona and Colorado and an office building in South Carolina.

MetroArtNorthMarq's Denver office arranged $40 million to refinance Metro Art, a 112-unit apartment complex constructed in 2013. Paul Bruder, senior vice president, arranged the non-recourse financing for the borrower on a 10-year term through a major life insurance company.

The community consists of a three-story building with 19,061 square feet of ground floor retail and a three-level subterranean parking garage. Amenities include a fitness center, pool, open-air courtyards and lounge and rooftop terraces.

Will James, vice president of NorthMarq's Atlanta regional office, arranged a $14.02 million refinance of a bridge loan for 1600 Williams Street Office, a 140,000 square-foot CBD-located class A office property in Columbia, S.C.

1600WilliamsThe property once served as Bellsouth's South Carolina headquarters location, but will now be leased to both AT&T and Aflac. The transaction was structured with a two-year interest-only term. NorthMarq arranged financing for the borrower through its relationship with a bridge/mezzanine lender and closed the transaction in 37 days.
"The timing of the original Bellsouth lease ending date, old loan maturity date and capital needed to refinance the property led to the need for a bridge loan on this asset," James said. "The sponsor believes the Aflac relationship will expand in the long term and be beneficial for the projects ownership for the foreseeable future."

In Mesa, Ariz., NorthMarq closed sale of the 184-unit Sonora Vista Apartments for $22.5 million.

Bill Hahn, Trevor Koskovich and Jesse Hudson of NorthMarq represented both the seller and the buyer in this transaction. Mesa Leased Housing Associates II LLC and an entity formed by Dominium of Plymouth, Minn. were the buyers. Two entities formed by Atlantic Development of Scottsdale, Ariz., were the sellers.

"Sonora Vista was a long-term investment for the sellers who were looking to liquidate in the booming Phoenix multifamily market place," Hudson said. "The buyers believed it was a strategic acquisition with huge operational upside due to the fact that the affordable rental restrictions were removed and renovating and rebranding the asset will increase rents significantly."

The 184-unit Sonora Vista apartment community, located at 9736 East Balsam Avenue and built in 2001, comprises 38 percent two-bedroom units, 42 percent three-bedroom units and 20 percent four-bedroom units.

"The Mesa multifamily market has recently shown an uptick in development activity as strong vacancy compression and record rent growth have corresponded with apartment construction," Hudson said. He added investors have been increasingly active in the submarket and consistently target value-add opportunities, pushing prices to record highs in 2018.

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