NorthMarq Capital arranged the $61.2 million refinance of three garden apartment complexes totaling 488 units owned by a local private family office. The properties are located in San Diego, Poway and La Mesa, CA. NorthMarq’s Gardiner Champlin and Marty Meagher handled the deal.
The transaction was structured with a 12-year, interest-only term. Financing was arranged through Fannie Mae’s Green Rewards program, which allowed the deal to lock at a spread 39 basis points below a comparable conventional deal.
Champlin explained, “The financing took advantage of a reduced interest rate incentive under Fannie Mae’s Green Rewards program, based on the sponsor’s commitment to make property improvements to reduce energy usage at the properties. The sponsor achieved significant cash-out even at the Tier 4 financing level, while reducing monthly loan payments due to a significant drop in interest rate from the prior loans paid off with this refinance.”
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