NorthMarq negotiated with the existing lender to discount the prepayment penalty and recast the loan. Scott tells GlobeSt.com, "In order to realize the discounted prepayment, we had to be sure of closing by a date certain with the take-out lender, and the bank really stepped up and delivered for our client." He goes on to say, "As a result of the financing, the borrower was able to lower his rate and lock in very favorable financing in this current low rate environment. Liquidity is returning to the market."
NorthMarq Capital also recently arranged a $9.5-million permanent loan for an unnamed 82-unit complex in Monmouth County with a regional bank. The 10-year fixed-rate loan provided a 30-year amortization.
Once again, NorthMarq reached an agreement with the existing life company lender to discount the prepayment penalty and recast the loan. "The replacement financing was closed under a tight timeframe to comply with the existing lender's requirements," Scott relates. "As a result of the financing, the borrower was able to lower his rate and lock in very beneficial financing in this low-rate environment."
In a separate deal, NorthMarq obtained a permanent loan of $8 million, secured by a 222-unit garden apartment complex in Morris County, from a regional bank. The 15-year fixed-rate, self-liquidating loan was secured at a rate of 6.125%.
According to Scott, these deals are a sign of better times ahead. "Several of our company's exclusive correspondents have reentered the market with aggressive rates on office, retail, industrial and multifamily properties." In fact, one lender recently locked down a grocery-anchored 50% LTV 10/30 loan at 5.85% on a 10/25 basis.
He adds, "NorthMarq's multifamily financing capabilities are very strong through our affiliates, AmeriSphere Multifamily Finance, Freddie Mac and HUD, however, in these cases, our solid banking relationships won the deals."
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