KANSAS CITY—Most observers expect interest rates to start going up in the next 12 to 36 months. That has motivated a lot of multifamily property owners to refinance their debt, and NorthMarq just completed one of the largest recent refinance deals in the Kansas City area.
Greg Duvall, senior vice president and managing director in the company's Kansas City-based regional office arranged the $201.5 million refinancing of a 10-property portfolio with a total of 2,190 multifamily units, 53,143-square-feet of suburban office space and 23,027-square-feet of unanchored retail space. Seven were multifamiles in the Kansas City suburbs, mostly in Johnson County, and another was a multifamily in the Dallas area. The office and retail components were also in the Kansas Cit area.
Duvall tells GlobeSt.com that he can't identify the borrower, but did say it owns about 30 properties in the area, making it one of the region's largest. “It's unusual to have this type of volume; most of our deals are one-off.” But this property owner was able to take a huge chunk of its portfolio and “lock in these low interest rates for the next 25 years. If rates move up they are set.”
The transaction also has a 25-year amortization schedule and was arranged through NorthMarq's exclusive correspondent relationship with Allianz Life Insurance Co. of North America. Furthermore, the loan was originally for the nine Kansas City-area properties, but Allianz agreed to provide the acquisition financing for the Dallas multifamily the borrower was purchasing and incorporate that loan into the original portfolio under the same terms.
“This client is an existing borrower of Allianz Life and has been great to work with over the years,” says Paul Wolters, senior director of commercial mortgages at Allianz. “As with any good borrowing relationship, it was great to be able to 'blend and extend' an existing loan and combine with a portfolio of other class A assets to make a meaningful loan in the Kansas City and Dallas metro areas.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
