SAN DIEGO, CALIFORNIA – Eric Flyckt, managing director, and Casey Allred, vice president of Northmarq’s San Diego office, arranged two loans totaling $45.548 million secured by two contiguous multifamily properties in Simi Valley, California. These properties are very similar in design, size and age. They total 180 units, comprise one-, two-, and three-bedroom units, and each offers a pool and spa, garages and fitness center.
The financing was arranged for the borrower through its designation as a Fannie Mae DUS Lender. Fannie Mae’s Green Rewards program produced a lower interest rate and higher loan proceeds in exchange for future property improvements that result in energy and water savings. The seven-year loans, with a rate in the mid two percent range, was structured with full-term interest-only payments and provided a significant return of equity to the borrower. The properties have a strong history of maintaining high occupancy levels and were 100 percent occupied at the time of the financing.
“These are extremely attractive loans with low fixed rates in the mid two percent range, are interest-only for the entire seven-year terms and generated a considerable return of equity to the borrower. These transactions went very smooth and closed in 45 days from application to funding,” said Flyckt.
About Northmarq
As a capital markets leader, Northmarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of $30 billion, loan servicing portfolio of more than $67 billion and the multi-year tenure of our more than 700 people.
