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On A Roll, NorthMarq Secures $31.4M in Financing of Three MA Retail Properties

July 21, 2017 - By The Real Reporter
Haverhill St, Methuen MA

BOSTONMichael Chase, Senior Vice President of NorthMarq Capital’s Boston office, recently arranged financing totaling $31,425,000 for three separate retail properties located throughout Massachusetts. NorthMarq worked with borrowers to set up long-term financial plans.

$12.5M of that financing went to a 170,000-sf retail plaza in Methuen. The transaction involved a long-term fixed rate, non-recourse financing, and a flexible pre payment structure. Coming off a maturing CMBS loan, NorthMarq arranged financing for the borrower through its relationship with a correspondent life company and was able to provide a nine-month forward rate lock.

“Utilizing the forward rate locking ability of one of our correspondent life companies, we were able to allow the borrower to take advantage of the attractive pre-election rates in early November of 2016,” says Chase. With the borrower’s interests in mind, NorthMarq knew this plan would work best. “This provided the borrower rate certainty while also helping to save over $1 million in prepayment defeasance charges had the loan been refinanced in 2016.”

NorthMarq went a similar route in Peabody, refinancing an office and retail center. This 37,692-sf mixed-use property received refinancing of $5.2M. NorthMarq arranged financing for the borrower through its relationship with a local bank, securing a long-term fixed rate and a flexible pre payment structure.

“We were pleased to once again meet the needs of a long-time client,” remarks Chase. “This newly developed mix-used center will surely be a long-term investment,” he adds. Again, NorthMarq sought a plan that promoted the borrower’s long-term stability. “We were able to provide a financing structure to fit the sponsor’s needs while also providing flexibility in case of the unexpected,” he concludes.

NorthMarq worked with a regional bank (again) to arrange to finance a neighborhood retail center in Tyngsboro. The property received acquisition financing of $13.725 M. With long-term financing including two years of interest-only and a flexible pre payment structure, the transaction was structured with the borrower’s interests in mind.

440 Middlesex Rd, Tyngsboro MA Michael Chase Centennial Dr, Peabody MA