"We saw an opportunity and negotiated with the existing lender to eliminate the prepayment penalty," Scott tells GlobeSt.com. "This enabled our client to take advantage of the low-rate environment and lock in a great rate for the long term." NorthMarq would not reveal the address of the property upon inquiry.
He adds, "NorthMarq's multi-family financing capabilities are very strong through our affiliate, AmeriSphere Multifamily Finance, Freddie Mac and HUD, however, in this case, our solid banking relationships won the deal."
As far as what's ahead for the world of commercial real estate finance, Scott says that life insurance company lenders are returning to the market and significantly reducing rates, with at least one of them slashing rates to, or below, 6%.
"This is something we have not heard from insurance companies for well over a year in commercial real estate circles," he says. "And it's not just good news--it's great news. Increased liquidity, with the life companies re-entering the market and filling a huge void, will provide much-needed assistance in the challenging market ahead."
That being said, Scott notes that several large insurers are still out of the market, seeking direction and trying to balance their portfolios and reduce their real estate exposure.
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