California Apartment Property Lands 15-year Financing
DEL MAR, Calif. —Eric Flyckt, managing director of NorthMarq Capital’s San Diego office arranged the $7 million refinance of an 86-unit apartment community. The transaction was structured with a 15-year term with three years interest only, followed by a 30-year amortization schedule. NorthMarq arranged financing for the borrower through its correspondent relationship with a life insurance company.
“The insurance company lender provided a seven-month forward commitment that allowed the borrower to lock in a sub-4 percent rate fixed for 15 years, while also avoiding a prepayment penalty on their former loan,” said Flyckt. “The borrower will use the excess loan proceeds to perform a significant renovation to the unit interiors. The property enjoys an irreplaceable location one block from the beach.”