February 5, 2020
NorthMarq’s Charles Cotsalas, Craig Bjornsund and Bryan Wylie arranged a $63-million permanent-fixed financing for 622 Broadway, an office and retail property in NoHo. Under the same ownership for the past 35 years, 622 Broadway is 100% occupied, with a tenant roster including BestBuy, Genesco and Take-Two Interactive.
The transaction was financed by one of NorthMarq’s correspondent life insurance companies. It was structured as a 12-year loan with three years’ interest-only followed by a 30-year amortization schedule at 3.39%.
The non-recourse loan provided the borrower with a significant cash-out, prepayment flexibility and one-time right to transfer the property to a third party without changing the loan terms. The lender provided this significant cash-out despite multiple lease rolls and retail exposure.
“The borrower was extremely sensitive to any recourse, and NorthMarq secured non-recourse, entity only financing,” said Cotsalas.
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