Institutional Equity JV To Purchase Co-Ops

(Read more on the debt and equity markets and the multifamily market .)

RIVERDALE, NY-NorthMarq Capital Inc., headquartered in Minneapolis, arranged financing for a $37.2-million institutional equity joint venture to acquire a portfolio of 261 unsold co-op units here. NorthMarq worked side-by-side with the client and institutional investor, and demonstrated the advantages of this niche market and the benefit of purchasing the units all equity, according to Greg Nalbandian, VP of NorthMarq Capital’s Northern New Jersey regional office.

“If funded by traditional debt, the units, which operated at breakeven, would have required a substantial interest reserve,” says Nalbandian. “NorthMarq created an institutional equity joint venture to mitigate the interest reserve structure.” A source close to the deal could not give further information due to confidentiality reasons.