NorthMarq's Bethesda office arranges $5.92m for Orlando apartments
Frank Relihan, vice president and Jason Smith, vice president of NorthMarq Capital's Bethesda, MD office have arranged first mortgage financing of $5.92m for the Riverfront Apartments, a 356-unit multifamily complex located in Orlando, Florida. Financing was based on a 10-year term with 2-years interest only followed by a 30-year amortization schedule and was arranged for a Southeast-based borrower by NorthMarq through its seller-servicer relationship with Freddie Mac. According to Relihan, this transaction was a former tax credit / Florida Housing Bond deal that went into default that Northmarq's client bought out of foreclosure. The property was not fully stabilized (85% leased); however, Freddie was comfortable with the debt level and plan to spend $2,000 per unit in upgrades over the next 12 months. "This was a complicated deal in a complicated market and Freddie saw the true value of a good sponsor and a realistic real estate loan," he said.